Medicare Advantage Value-Based Insurance Design Model Will End After 2025

The Centers for Medicare & Medicaid Services (CMS) Innovation Center will end the Medicare Advantage value-based insurance design (VBID) model December 31, 2025. CMS has determined that the model, which launched in 2020, has imposed “substantial and unmitigable” costs to the Medicare Trust Funds, and the costs cannot be addressed by policy changes. The costs were discovered in the programs’ annual evaluations. The excess costs in 2021 totaled $2.3 billion, and $2.2 billion in 2022. The higher-than-expected costs were driven by increased risk score growth and Part D expenditures. CMS believes no viable policy modifications . . .