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Download as PDF

August 24, 2021

The Honorable Ron Wyden
U.S. Senate Committee on Finance
219 Dirksen Senate Office Building
Washington, DC 20510 The Honorable Richard Neal
Ways & Means Committee
1102 Longworth House Office Building
Washington, DC 20515


 

Dear Chairman Wyden and Chairman Neal, 

On behalf of the undersigned organizations, we urge you to include the Value in
Health Care Act of 2021 in the Reconciliation bill pursuant to the FY 2022
Budget Resolution.  H.R. 4587, the Value in Health Care Act of 2021—which
independent analysts have evaluated in this report and estimate would save the
Medicare Trust Fund $280 million over 10 years1 — would ensure that value-based
health care continues to serve Medicare patients by embracing higher value and
lower cost. 

Specifically, the Value in Health Care Act of 2021 makes a number of important
reforms to strengthen Medicare’s value-based care models and Accountable Care
Organizations (ACOs) to ensure that these models continue to produce high
quality care for the Medicare program and its beneficiaries as well as to
generate savings for taxpayers. With estimates showing less than 40 percent2 of
healthcare dollars are tied to value-based payment and goals to increase that
percent moving forward, the value-based care movement is at a critical juncture.

The policies in this bipartisan bill are more important than ever given lessons
learned about our nation’s health care system as we continue to confront the
COVID-19 pandemic. ACOs and other alternative payment model (APM) participants
have been on the front lines supporting clinicians and patients throughout the
COVID-19 crisis. As part of their commitment to value-based care, ACOs and APM
participants were already utilizing many of the tools which have been key to
managing the COVID-19 crisis—such as care coordinators, remote monitoring, data
analysis and aggregation, and patient tracking. They were able to quickly and
effectively deploy these same resources to manage patient populations throughout
the pandemic. Additionally, the disproportionate impact of COVID-19 on the
Black, Latino, and other communities highlights the need for program
improvements, such as fair and accurate risk adjustment.  

The reforms in this legislation are projected to save the Medicare Trust Fund
$280 million over 10 years and will further strengthen ACOs and APMs and ensure
their continued success. We are pleased that the bill removes barriers to
participation, provides appropriate shared savings rates, modifies risk
adjustment methodologies, improves the fairness and accuracy of benchmarks, and
provides educational and technical support for ACOs. The bill also makes
important steps to reinforce the transition to value through extending and
modifying Advanced APM bonuses and addressing aspects of APM overlap. To advance
goals of addressing health inequities, the bill directs a study of the impact of
value-based care on health equity. These reforms will ensure that value-based
care models continue to be viable for physician and hospital participants. 

Thank you for your leadership on these important issues. This bill is a
comprehensive approach that will save Medicare Trust Fund dollars, strengthen
our country’s value-based care program and ensure high quality, lower cost care
for our nation’s patients. 

Sincerely, 

American Academy of Family Physicians Association of American Medical Colleges
American College of Physicians Federation of American Hospitals American
Hospital Association Health Care Transformation Task Force American Medical
Association Medical Group Management Association AMGA National Association of
ACOs   America’s Physician Groups Premier healthcare alliance

 

cc: The Honorable Frank Pallone, Chairman, House Committee on Energy & Commerce

The Honorable Patty Murray, Chair, U.S. Senate Committee on Health, Education,
Labor & Pensions

--------------------------------------------------------------------------------

1 The Moran Company, "Value in Health Care Act: Improvement to Medicare’s ACOs
and APMs: Fiscal Implications" (August 2021) (enclosed).

2 Health Care Payment Learning and Action Network (HCPLAN), "APM Measurement:
Progress of Alternative Payment Models: 2019 Methodology and Results Report,"
(2019) at page 15.

 
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