CMS Terminates Medicare Models to Save $750 Million

The CMS Innovation Center has announced the early termination of four Medicare payment models, a decision aimed at saving approximately $750 million and refocusing on more effective value-based care strategies. These models are set to conclude by December 31, 2025. The move is part of CMS's ongoing evaluations of financial impacts and operational feasibility, ensuring resources are directed towards high-potential programs.

In a statement, CMS highlighted its plan to develop a new strategy prioritizing disease prevention through evidence-based practices, improved public access to health information, and fostering competition in the healthcare market. This strategic shift is intended to enhance quality and reduce costs, ultimately aiding Americans in leading healthier lives.

Additionally, CMS has decided not to pursue two previously planned programs aimed at increasing affordable drug access and integrating clinical research into Medicare models, due to the rescission of a prior executive order. Furthermore, the Integrated Care for Kids program is under review for potential modifications or reduction in funding.