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Statement by BPC Health Program Leaders on New HHS Commitment to Health Care Payments Based on Value

Washington, D.C. ? The Bipartisan Policy Center (BPC) issued the following statement by Janet Marchibroda, BPC’s Director of the Health Innovation Initiative and Executive Director of the CEO Council on Health and Innovation; Katherine Hayes, J.D., BPC’s Director of Health Policy; and Lisel Loy, J.D., Director of BPC’s Prevention Initiative, regarding HHS Secretary Sylvia M. Burwell’s new framework for health care released today:

“We commend the secretary for announcing measurable goals and a timeline for moving the Medicare program toward paying providers based on the quality rather than the quantity of care they give patients. HHS’ goal to tie at least 30 percent of fee-for-service Medicare payments to quality or value through alternative payment models by 2016 and 50 percent of such payments to these models by 2018 will further align incentives to improve the health of individuals, the population as a whole and the health care system.

“Increasing the share of provider payments that are value-based and promoting delivery system innovations that have been shown to deliver value are key elements of a
September 2014 report
of BPC’s CEO Council on Health and Innovation. Comprised of chief executives of some of the nation’s largest employers, the council is inviting other employers to join them in both sharing and committing to strategies for improving the health and wellness of individuals, the health of communities and the health care system.

“Consistent with the focus on promoting value-based payment systems, BPC’s Delivery System Reform Initiative recently released
a new set of recommendations
to accelerate the transition away from fee-for-service to new models of care by better engaging patients, setting clearer expectations for health care providers and tying payment incentives to increasing levels of accountability for health outcomes and savings.

“We appreciate the secretary’s recent emphasis on the need for ?a system that keeps us healthy, rather than waiting to care for us when we get sick,’ as BPC’s
Prevention Initiative
seeks to embed holistic preventive and community-level strategies into new models of care. In addition, the Health Care Payment Learning and Action Network will serve as an important mechanism for spreading successful local and regional efforts to improve health, spend dollars more wisely and support system-wide change.

“Moving away from fee-for-service payment toward new delivery and payment models that reward value, improve health outcomes and patient experience and reduce costs has bipartisan support. But action on behalf of both the public and private sectors is essential for success. Today’s announcement signals HHS’ commitment to make this important transition. We look forward to working on a bipartisan basis with the administration, Congress and stakeholders across every sector of health care to advance these shared goals.”