More than half of health plans use outcomes-based contracts, study finds

Outcomes-based contracts are gaining traction among health plans, as new Avalere research finds 59 percent of payers have used the payment model.

Avalere researchers administered a survey to 50 payers on their use of outcomes-based agreements in 2019. While more than half of health plans are using outcomes-based contracts now, in 2017, only 24 percent of health plans had such contracts.

Avalere found almost 60 percent of health plans that already had an outcomes-based contract reported savings and clinical improvement as the biggest advantages of the agreement. Since Avalere began completing its study in 2017, both cost savings and clinical improvements have increased.

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