CBO Report on Medicare Fee-for-Service Demos Predicts Challenge in Overcoming Fee-for-Service Incentives

The Congressional Budget Office has released a report critical of the Medicare fee-for-service demonstration projects in disease management, care coordination and value-based payments, according to a Health Leaders Media report.

The CBO report has met with mixed reviews from stakeholders, according to the report. Some feel that the report "holds no surprises" for the industry. Blair Childs, the senior vice president of public affairs for Premier Healthcare Alliance, said he was not surprised by the report and could have predicted what it would say before its release.

The report says demonstrations aimed at reducing spending and increasing quality of care face significant challenges in overcoming incentives inherent in the fee-for-service payment system, which rewards more care rather than coordination between providers.

The report also suggested that changes to payment and delivery systems will be necessary for programs that involve disease management, care coordination and value-based payment in order to reduce spending.

Related Articles on Coding, Billing and Collections:
Single Payor System Finds Support in Oregon
ASCA's Medicare Calculator Updated With 2012 Payable Procedures and Rate Corrections
Florida Senators Introduce Bill to Establish Health Insurance Exchange

© Copyright ASC COMMUNICATIONS 2012. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.