Medicare Advantage Plans Increased Spending On 2-Sided Risk Models In 2021

Medicare Advantage (MA) plans in 2021 increased their spending on two-sided risk arrangements with their provider networks. In 2020, 35.2% of MA payments to provider organizations went to a combination of alternative payment models that have two-sided financial risk. That is an increase compared to 2020 when 29.3% of spending went to such models, according to an analysis of penetration rates for alternative payment models. Overall, spending on a two-sided risk model was 19.6% of total health care payments in 2021, compared with 17.9% in 2020.
In one-sided, or upside risk-only . . .