To empower Medicare beneficiaries by increasing their control of their decisions and finances while improving health outcomes and lowering costs.
- Patients are best positioned to determine the value of health care services, working with their health care providers.
- Prices are best for patients when determined by economic value rather than government and when they are known in advance of receiving services.
- Patients benefit from more options for doctors, hospitals, and insurance plans.
- Governments’ use of non-market-based methods to determine reimbursement leads to significant amounts of spending on low-value services and products and underpayment for high-value services and products, stifles beneficial innovation, and, because of Medicare’s size, distorts payments throughout the health care system.
- Intermediate entities that can manage financial risk and ensure quality of care are important to the transition to value-based care within the Medicare program.