HCPLAN GOAL STATEMENT FAQs

The Health Care Payment Learning & Action Network (HCPLAN) is committed to advancing key objectives for the health care system: higher quality care, enhanced patient experience, and greater health equity at lower cost. The HCPLAN views the adoption of downside risk alternative payment models (APMs) as key to these objectives and recognizes that different markets and lines of business are progressing at different rates. To that end, the HCPLAN has established goals for the adoption of downside risk APMs.

OUR GOAL STATEMENT

Accelerate the percentage of U.S. health care payments tied to quality and value in each market segment through the adoption of downside risk alternative payment models, which are defined in detail as Categories 3B and 4 of the HCPLAN APM Framework. See a summary of these categories in the figure below. 

WHAT IS THE DIFFERENCE BETWEEN "UPSIDE SAVINGS" AND "DOWNSIDE RISK"?

Upside savings and downside risk are financial mechanisms used in accountable care to incentivize health care providers to deliver high-quality, cost-effective care. Upside savings (Category 3A) allows providers to keep additional payments or share in savings if they reduce costs while maintaining or improving care quality. Conversely, downside risk (Category 3B) requires providers to incur a financial loss and possibly repay a portion of the loss if they exceed cost targets or fail to meet quality benchmarks. Together, these two arrangements provide options to providers based on a variety of factors, encouraging them to optimize care and control costs to achieve financial and clinical success. 

HOW DID THE HCPLAN COME UP WITH ITS 2030 APM GOALS?

The 2030 HCPLAN goals are based on the adoption of downside risk APMs (Categories 3B and 4) across the four lines of business: commercial, Medicaid, Medicare Advantage, and Traditional Medicare. Definitions for APM Categories 3B and 4 are detailed in the HCPLAN APM Framework and summarized in the figure below. The HCPLAN defined these goals based on past APM adoption survey results and analysis as well as feedback sessions with partner organizations.

Source:  HCPLAN APM Framework

HOW DOES THE HCPLAN MEASURE AND REPORT ON APM MODELS WITH DOWNSIDE RISK?

As part of its annual Measurement Effort, the HCPLAN invites state Medicaid agencies and health plans across market segments to report total in- and out-of-network health care spending paid to providers through each of the categories and subcategories in the most recent 12 months in the commercial, Medicaid, and Medicare Advantage markets. Participating plans and states categorize payments according to the HCPLAN’s APM Framework using the HCPLAN survey tool, definitions, and methodology. Downside risk APMs correspond to results for Categories 3B and 4. Find more information on this approach on the Data Collection Process page and view results from past annual HCPLAN Measurement Efforts on the Measurement Efforts Results page.

WHY IS IT IMPORTANT TO MEASURE APM ADOPTION BY LINE OF BUSINESS?

Measuring APM adoption by line of business is crucial because each line faces unique challenges and exhibits varying adoption rates. The HCPLAN recognizes this variability and has established specific goals for each line of business to effectively monitor progress and develop tailored strategies and solutions.