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Most public and private insurance plans pay for health care on a fee-for-service basis—individual doctors, hospitals and other providers are paid for each service they provide. Many policy experts believe this approach is flawed and increasingly unaffordable, because it incentivizes providers to deliver more care—more procedures, more diagnostic tests—and more expensive care rather than better care.
But what form should a new payment system take? This brief provides an overview of four prominent models under discussion.
- For the most part, the U.S. health care system rewards providers for quantity of procedures rather than value of care.
- Policy-makers are considering a number of models to reform the payment system, including accountable care organizations, patient-centered medical homes, comprehensive care payment and episode-based payment.
Health Policy Snapshot
Two-page briefs providing insight and analysis on key issues affecting health and health care in the United States.
View allU.S. health care system rewards providers for quantity not quality