Feds to target value, outlays

Providers can kiss fee-for-service payments goodbye, says Kathleen Sebelius.

The former boss at the Department of Health and Human Services said Medicare and Medicaid payments will increasingly be bundled, and based on value delivered. Her comments came last month at the NIC 2015 Capital & Business Strategies Forum in San Diego, where she also delivered a robust defense of the five-year-old Affordable Care Act.

“Costs are coming down and quality is improving,” she told the crowd.

Sebelius added that the new health law gives the Centers for Medicare & Medicaid Services authority to experiment with ideas that will raise care quality while lowering costs