Factors Affecting Medical Trends: Deflators

Risk-based payments

The industry is beginning to realize significant savings by holding physicians and health systems financially responsible for patient outcomes.

  • Government programs such as Medicare Accountable Care Organizations (ACOs) have shown promise in reducing costs. CMS released results for Medicare and pioneer ACO’s in early 2014 and reported more than $380 million in savings.
  • One of the largest and oldest commercial ACO-like programs between Blue Shield of California and CalPERS has recorded $95 million in net savings over a four-year period since its inception in 2010.
Risk-based payments