AXIOS September 6, 2023
The Biden administration wants states to control and lower their health care spending through a new Medicare experiment that takes a page from Maryland’s unique hospital payment system.
The big picture: The latest attempt at transforming how America pays for health care builds on states’ work to improve care quality while managing health care costs for all payers, including Medicare, Medicaid and private insurers.
Zoom in: States will give participating hospitals a fixed payment each year, known as a hospital global budget, under the 11-year experiment being called the States Advancing All-Payer Health Equity Approaches and Development (AHEAD) Model.
- The amount will be based on historical Medicare and Medicaid spending and adjusted each year for inflation and changes in...
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