Affordable Care Act payment model saves more than $25 million in first performance year

Source: Centers for Medicare & Medicaid Services, Press Release, June 18, 2015

The Centers for Medicare & Medicaid Services (CMS) today announced positive and promising results from the first performance year of the Independence at Home Demonstration, including both higher quality care and lower Medicare expenditures. ….

The CMS analysis found that Independence at Home participants saved over $25 million in the demonstration’s first performance year – an average of $3,070 per participating beneficiary – while delivering high quality patient care in the home. CMS will award incentive payments of $11.7 million to nine participating practices that succeeded in reducing Medicare expenditures and met designated quality goals for the first year of the demonstration.

According to CMS’ analysis, all 17 participating practices improved quality in at least three of the six quality measures for the demonstration in the first performance year. Four participating practices met all six quality measures. Medicare beneficiaries who are participating in Independence at Home practices, on average:
• Have fewer hospital readmissions within 30 days;
• Have follow-up contact from their provider within 48 hours of a hospital admission, hospital discharge, or emergency department visit;
• Have their medications identified by their provider within 48 hours of discharge from the hospital;
• Have their preferences documented by their provider; and
• Use inpatient hospital and emergency department services less for conditions such as diabetes, high blood pressure, asthma, pneumonia, or urinary tract infection….