Participation in Medicare Advantage Risk-Based Provider Payments Shows Little Impact on Care Delivery

Medicare is moving from fee-for-service payments to risk-based contracts designed to minimize costs and make insurers, health care organizations, and providers financially responsible for patients’ health. 

A new study finds these contracts do not meaningfully change how care is delivered. 

“We did not see consistent, dramatic reductions in health care utilization or low-value care,” said LDI Senior Fellow Aaron Schwartz, who led the study, with coauthors including LDI Senior Fellows Sumedha Chhatre and Amol Navathe. “Risk-based contracts need to be redesigned if they’re going to rapidly transform patient care.”