2020 & 2021 Measurement Efforts

2020:

The 2020 LAN APM Measurement Effort includes data from the LAN survey, surveys fielded by AHIP and the Blue Cross Blue Shield Association (BCBSA), and Traditional Medicare. Conducted from May to December 2020,* the survey process collected data on payment activity in the 2019 calendar year from 76 participants, accounting for nearly 216.4 million people, or 72.5%, of the covered U.S. population. Health plans, states, and Traditional Medicare reported the total dollars paid to providers according to the LAN’s APM Framework, which offers a common approach to classifying payment by category and subcategory. The LAN analyzed aggregate results by category and subcategory as well as by line of business: commercial, Medicare Advantage, Medicaid, and Traditional Medicare. The results show progress, with 38.2% of total U.S. health care payments tied to APMs in 2019, a steady increase from 23% four years ago.

The LAN APM Measurement Effort revealed the following for 2019 payments:

  • 39.3% of health care dollars in Category 1 (e.g., traditional fee-for-service or other legacy payments not linked to quality)
  • 22.5% of health care dollars in Category 2 (e.g., pay-for-performance or care coordination fees)
  • 38.2% of health care dollars in a composite of Categories 3 & 4 (e.g., shared savings, shared risk, bundled payment, population-based payments, integrated finance and delivery system payments)

These results highlight a continued move away from a fee-for-service system that reimburses only on volume, and towards patient- and value-centered APMs.
The 2021 Measurement Report includes both 2019 and 2020 APM data and was released in December 2021. Please see the LAN press release for further details on the 2021 APM Measurement Effort.

*Recognizing the impact of the COVID-19 public health emergency (PHE) on the health care industry, the LAN adjusted its regular Measurement Effort cycle, giving health plans and participating states the opportunity to respond to the survey on a timeline that made sense to the participants’ business operations.

Publication Info
Publication date: December 15, 2021
35 pages
Suggested Citation: Health Care Payment Learning & Action Network. Measuring Progress: Adoption of Alternative Payment Models in Commercial, Medicaid, Medicare Advantage, and Traditional Medicare Programs. December 15, 2021

2020:

The LAN invited health plans across market segments, as well as managed Medicaid Fee for Service (FFS) states, to quantify the volume of health plan in- and out-of-network spending that flows through APMs, including key areas of available pharmacy and behavioral health spending, if such data were available. Each of the questions in the survey corresponded to the categories and subcategories of the LAN’s APM Framework, using the LAN survey tool, definitions, and methodology.

In this year’s effort, 69 health plans, 6 Medicaid FFS states, and Traditional Medicare participated; the measurement results were based on data combined across the LAN survey, the BCBSA survey, the AHIP survey, and Traditional Medicare. Health plans, states, and Traditional Medicare reported the total dollars paid to providers. The LAN calculated aggregate results at the category and subcategory level as well as across lines of business.

For more information on the methodology, please read the Methodology and Results Report.

2021

The 2021 LAN APM Measurement Effort includes data from the LAN survey, surveys fielded by AHIP and the Blue Cross Blue Shield Association (BCBSA), and Traditional Medicare. Conducted from May to July 2021, the survey process collected data on payment activity in the 2020 calendar year from 79 participants, accounting for nearly 238.8 million people, or 80.2%, of the covered U.S. population. Health plans, states, and Traditional Medicare reported the total dollars paid to providers according to the LAN’s APM Framework, which offers a common approach to classifying payment by category and subcategory. The LAN analyzed aggregate results by category and subcategory as well as by line of business: commercial, Medicare Advantage, Medicaid, and Traditional Medicare. The results show progress, with 40.9% of total U.S. health care payments tied to APMs in 2019, an increase from 23% five years ago.

The LAN APM Measurement Effort revealed the following for 2020 payments:

  • 39.3% of health care dollars in Category 1 (e.g., traditional fee-for-service or other legacy payments not linked to quality)
  • 19.8% of health care dollars in Category 2 (e.g., pay-for-performance or care coordination fees)
  • 40.9% of health care dollars in a composite of Categories 3 & 4 (e.g., shared savings, shared risk, bundled payment, population-based payments, integrated finance and delivery system payments)

These results highlight a continued move away from a fee-for-service system that reimburses only on volume, and towards patient- and value-centered APMs.
The 2021 Methodology and Results Report includes both 2019 and 2020 APM data and was released in December 2021. Please see the LAN press release for further details on the 2021 APM Measurement Effort.

Publication Info
Publication date: December 15, 2021
35 pages
Suggested Citation: Health Care Payment Learning & Action Network. Measuring Progress: Adoption of Alternative Payment Models in Commercial, Medicaid, Medicare Advantage, and Traditional Medicare Programs. December 15, 2021

2021:

The LAN invited health plans across market segments, as well as managed Medicaid Fee for Service (FFS) states, to quantify the volume of health plan in- and out-of-network spending that flows through APMs, including key areas of available pharmacy and behavioral health spending, if such data were available. Each of the questions in the survey corresponded to the categories and subcategories of the LAN’s APM Framework, using the LAN survey tool, definitions, and methodology.

In this year’s effort, 73 health plans, 5 Medicaid FFS states, and Traditional Medicare participated; the measurement results were based on data combined across the LAN survey, the BCBSA survey, the AHIP survey, and Traditional Medicare. Health plans, states, and Traditional Medicare reported the total dollars paid to providers. The LAN calculated aggregate results at the category and subcategory level as well as across lines of business.

For more information on the methodology, please read the Methodology and Results Report.