Payment Incentives

The "fee-for-service" payment method, common in many states' Medicaid programs, has contributed to escalating costs and lower quality by rewarding providers who order high numbers of complex services while underpaying for high-value, lower-cost services such as primary and preventive care, evaluation and care coordination. The policies under the Payment Incentives category explore approaches to changing the way Medicaid reimburses for services to encourage high quality, patient-centered, coordinated care while reducing overall costs.

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