Three quarters of Medicare beneficiaries are in the traditional fee-for-service model. The Affordable Care Act is changing the way that Medicare pays doctors, hospitals and other providers from that model, which encourages as many visits, tests and procedures as endurable to a vaule based and outcome based payment system. Some Medicare Advantage plans already make use of these type of compensation plans. Now Medicare itself will be using them. Since Medicare is such a huge driving force in the US Healthcare system, it is expected to set the norm for others as well.
– Julia Cooke