About the Problem

Medicare providers charge by quantity of treatments, not quality of treatment. This system does not always supply the highest-quality care or most cost-effective treatments.


About the Policy

There are various existing pilot programs for establishing Accountable Care Organization and bundled payments for Medicare and Medicaid in which providers are paid for the quality instead of the quantity of care. Preliminary research from HHS indicates these programs generated approximately $300 per participating beneficiary per year while still maintaining quality care. Another Medicare pilot program — called Independence at Home — offered incentives for providers to visit elderly patients at home and saved more than $3,000 per beneficiary. Although these programs are in their initial stages, they can serve as models for widespread expansion in the years ahead.

Public Support

63% of All Polled
69% of Democrats
61% of Republicans
59% of Independents

Polling data derived from three national surveys conducted by Cohen Research Group in February and March 2016. Each survey had a sample size of at least 1,000 registered voters with a margin of error of +/- 3.1%