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Health Insurers Increasingly Embrace Outcomes-Based Alternative Payment Models

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About 1 in 4 US health insurers surveyed this year by Avalere reported that they already have an outcomes-based alternative payment model in place with at least one drug or medical device manufacturer.

85% of insurance plans reported that they’re keen to develop more such arrangements; 33% said they’re already in talks to do so.

“Outcomes-based contracts are becoming more of a mainstream topic within health plans,” Avalere president Matt Brow said. “While most remain in an exploratory stage, plans that have accrued some experience with outcomes-based contracts are interested in pursuing more.”

“If plans and providers can see real savings, it is likely to compel more to seek out value-based contracts with their suppliers,” noted HealthcareDive‘s Meg Bryant.

Read more here, in Healthcare Dive.