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The Impact of Alternative Payment Models on Medicare Spending and Quality, 2012-2022

Publication Date

We evaluated both the Center for Medicare and Medicaid Services Innovation Center (CMS Innovation Center) models and the Medicare Shared Savings Program (MSSP) and found that they have generated gross savings for all beneficiaries in the Traditional Medicare program while demonstrating positive impacts on selected quality measures. Between 2012 and 2022, 19 selected CMS Innovation Center models generated an average annual savings ranging from $23 to $31 per beneficiary per year, amounting to $0.70-$1.0 billion in annual gross savings and total gross savings of $7.7 – $11.0 billion between 2012 and 2022. Between 2012 and 2022, MSSP generated an average annual savings ranging from $68 to $94 per beneficiary per year, amounting to $2.1- $2.9 billion in annual gross savings and total gross savings of $23 – $31 billion between 2012 and 2022.  Most of the estimated reductions in Medicare spending from Innovation Center models were attributed to counties that attained or maintained relatively high levels of model penetration over the study period.

Most of the estimated savings from CMS Innovation Center models were attributed to counties that attained or maintained relatively high levels of model penetration.

*This content is in the process of Section 508 review. If you need immediate assistance accessing this content, please submit a request to Kaushik Ghosh, kaushik.ghosh@hhs.gov. Content will be updated pending the outcome of the Section 508 review.

 

Product Type
ASPE Issue Brief
Populations
Older Adults | Medicare Beneficiaries
Location- & Geography-Based Data
National Data | County Data
Program
Medicare