CMS launches value-based Medicare Advantage program

CMS has rolled out a new Medicare Advantage Value-Based Insurance Design Model that will be tested in seven states starting in 2017 as a way to trim costs in the treatment of certain chronic conditions. The new Medicare Advantage plan offers flexibility in extra supplemental benefits for enrollees with diabetes, congestive heart failure, chronic obstructive pulmonary disease, past stroke, hypertension, coronary artery disease, mood disorders and combinations of these categories. The model starts Jan. 1, 2017 and will run for five years in Arizona, Indiana, Iowa, Massachusetts, Oregon, Pennsylvania, and Tennessee. Upon approval from CMS, eligible Medicare Advantage plans in these states may offer enrollees varied plan benefit design. The goal is to improve beneficiary health, reduce the use of avoidable high-cost care and reduce costs for plans, beneficiaries and the Medicare program, according to CMS.