The LAN’s 2023 APM Measurement Effort Showcases Steady Growth in Alternative Payment Models

Washington, D.C., October 30, 2023

The Health Care Payment Learning & Action Network unveiled compelling new data today at the 2023 LAN Summit showing steady, consistent growth in Alternative Payment Methods (APMs) across the U.S. health care industry.

Key findings include the following:

  • New measurement shows over 93 million Americans are in an accountable care arrangement (infographic).
  • Payers across all lines of business (Commercial, Traditional Medicare, Medicare Advantage, Medicaid) are increasingly investing in value-based care models where providers share in the savings and the losses.
  • 72% of payers surveyed believe that APM activity will increase in the future.

The new data and trends point to increased adoption and acceptance of accountable care amid growing recognition that accountable care arrangements provide higher quality, person-centered care.

Among payers, sentiment stayed strong in favor of APM adoption. The 2023 APM Measurement Effort reports that 93% of respondents believe APM adoption will result in better quality care, and 79% believe it will result in more affordable care.

Each year we continue to measure how well we are progressing towards the APM adoption goals that we set in 2016 and updated in 2019 and 2022. Our dedication and accountability to this work is reflected by the fact that the data researched and provided by the LAN is the most comprehensive and robust set of data on APMs available and serves as a benchmark for the entire industry.
– Dr. Alice Chen, Chief Health Officer at Centene Corporation and LAN Executive Forum Co-Chair

2023 APM Measurement Effort

The LAN’s annual APM Measurement Effort is the most comprehensive and detailed analysis of national trends in APM adoption and is continually being updated and improved to respond to changing needs. This year the LAN has introduced a widely anticipated and requested measure on lives covered in accountable care, showing the impact of reform efforts on the health care population.

The LAN reports payment data by line of business: Commercial, Medicaid, Medicare Advantage, and Traditional Medicare. A total of 64 health plans, four fee-for-service Medicaid states, and Traditional Medicare participated in the 2023 LAN Measurement Effort representing approximately 86.7% of people covered by an insurance plan in those markets. The 2022 survey reveals that:

  • In 2022, 36.1% of lives reported were covered in accountable care arrangements in Categories 3 and 4.
  • Medicare Advantage had 57.2% of health care dollars in Categories 3 and 4, of which 38.9% were in two-sided risk APMs (Categories 3B and 4).
  • Traditional Medicare had 41.5% of health care dollars in Categories 3 and 4, of which 30.2% were in two-sided risk APMs (Categories 3B and 4).
  • The Commercial line of business had 34.6% of health care dollars in Categories 3 and 4, of which 16.5% were in two-sided risk APMs (Categories 3B and 4).
  • Medicaid had 40.2% of health care dollars in Categories 3 and 4, of which 18.7% were in two-sided risk APMs (Categories 3B and 4).

The full results of the APM Measurement Effort, and the LAN APM Framework that defines the payment reform categories, are available on the LAN website.

About the 2023 LAN Summit

The annual LAN Summit brings together physicians, payers, purchasers, government leaders, advocates, and other stakeholders from across the country to discuss transforming the health care payment system. Featuring notable guest speakers and panels of top government and industry leaders, the annual LAN Summit has become the industry’s “go to” event for health care reform.

This year’s Summit introduces major new initiatives, including a new Person Perspectives Council to represent people, patients, and caregivers, a National Health Plan Workgroup to accelerate payment reform at the national and local levels, and new guidance for driving successful collaborations between community-based organizations and health care entities.

About the LAN

The Health Care Payment Learning & Action Network (HCPLAN or LAN) is an active group of public and private health care leaders dedicated to providing thought leadership, strategic direction, and ongoing support to accelerate our care system’s adoption of alternative payment models (APMs). The LAN mobilizes payers, providers, purchasers, patients, product manufacturers, policymakers, and others in a shared mission to lower care costs, improve patient experiences and outcomes, reduce the barriers to APM participation, and promote shared accountability.

Since 2015, health care stakeholders have relied on the LAN to align them around core APM design components, host forums and summits to share information and inspire action, build consensus among leaders, and measure the progress of APM adoption. The LAN will continue to be a trusted partner that connects the public and private sectors, identifies and shares best practices, and guides the field in rapidly moving to value-based payment.

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