Medicare provides coverage for approximately 62 million individuals in the United States and accounts for $750 billion in health care spending annually1; if the Medicare eligibility age is lowered, these numbers will increase. Of this total, 27.2% is spent on clinician, outpatient, and other services in Medicare’s traditional Part B program. Throughout the 1990s and 2000s, the Part B program experienced unwarranted variation in care quality and high per capita annual expenditure growth rates of 6.3% and 7.0%, respectively.2 Consequently, the Affordable Care Act, enacted in 2010, and the Medicare Access and CHIP Reauthorization Act, enacted in 2015, included provisions for implementing a wide array of value-based payment (VBP) programs in Part B, with the hope that paying clinicians for value rather than volume would improve quality and reduce the rate of growth in Medicare costs (see key terms for Medicare VBP in the Supplement).
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Johnston KJ, Hockenberry JM, Joynt Maddox KE. Building a Better Clinician Value-Based Payment Program in Medicare. JAMA. 2021;325(2):129–130. doi:10.1001/jama.2020.22924
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