Medicare Innovation Center Models Cost $7.7 Billion In Aggregate, But Some Models Generated Savings

Medicare payment models tested by the Center for Medicare and Medicaid Innovation (CMMI) cost the federal government $7.7 billion, which included $6.4 billion in model net expenses and $1.3 billion in model-specific implementation and evaluation costs. Of the 18 CMMI models analyzed by health care consulting firm Avalere Health Advisory, six yielded net savings of about $2.9 billion for the federal government. However, the savings were balanced by $9.6 billion in net losses generated by six models. The remaining six models had a nominal financial impact on Medicare costs.

CMMI, as established under the . . .