December 9, 2021
In a recent article in the American Journal of Managed Care, Senior Vice President, Policy & Economics, Travis Broome discusses the problem of equitable benchmarking as more and more providers take on accountable care. With the combination of Medicare Shared Savings Program (MSSP) and Medicare Advantage (MA) plan penetration, the current model of pure fee-for-service (FFS) comparison will no longer be viable: “On our current trajectory, this means that eventually, MSSP will both suppress MA rates and MSSP rates. This trajectory will eventually change the incentive from reducing the total cost of care to consolidation among health care providers to avoid this negative feedback loop.”
As we approach a future where pure FFS is functionally extinct, how can we administratively set rates that are localized enough that they do not drive consolidation?