The Center for Medicare and Medicaid Innovation (CMMI), established in 2010 to create innovative payment models, incurred a net cost of $5.4 billion to the government between 2011 and 2020, according to a Congressional Budget Office (CBO) report. Despite spending $7.9 billion on new models, only $2.6 billion in savings was realized. The CBO predicts an additional $1.3 billion increase in federal spending from 2021 to 2030, underscoring the importance of ongoing evaluation for healthcare innovation initiatives.
The Centre for Medicare and Medicaid Innovation (CMMI), which was formed by the Affordable Care Act (ACA) in 2010 to develop cutting-edge payment models, ended up costing the government more money than it saved during its first ten years, according to a recent assessment from the Congressional Budget Office (CBO).
The CBO’s report, published on September 28, revealed that between 2011 and 2020, the CMMI led to a net increase in federal spending of $5.4 billion, equivalent to approximately 0.1% of total Medicare spending. This increase in spending occurred because the center spent $7.9 billion to operate new payment models, while the savings generated from these models amounted to only $2.6 billion.
Looking ahead, the CBO estimates that the CMS innovation center will continue to increase federal spending, projecting an additional $1.3 billion increase from 2021 to 2030. This report highlights the need for ongoing evaluation and adjustment of healthcare innovation initiatives to ensure that they effectively achieve their intended cost-saving goals.
