Healthcare groups back 'Value Act': 5 things to know

In a July 20 letter to House lawmakers, 14 healthcare groups said the transition to value-based reimbursement is at a "critical juncture," and legislation like the Value in Health Care Act of 2021 is key to reform.

Five things to know about the Value Act:

1. The bipartisan legislation, reintroduced July 20, aims to increase the shared savings rate for some accountable care organizations to between 50 and 60 percent, depending on in which track they're participating.

2. The bill would modify the risk-adjustment methodology to change caps on positive and negative adjustments. 

3. Barriers to shared savings for participants would be targeted under the bill. This includes removing provisions that require an ACO to repay shared losses or participate in a two-sided risk model before the ACO has at least three years of experience in such programs.

4. The bill also aims to ensure benchmarks used to calculate payments are fair and accurate.

5. "These reforms will ensure that value-based care models continue to be viable for physician and hospital participants," the healthcare groups, which include the American Hospital Association and AHIP, said in their letter. 

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