CENTER UPDATE | MARCH 2025

In this Issue:

  • There’s Still Time to Register for the 2025 V-BID Summit!
  • Medicare Ends V-BID Model Over High Costs Despite Improved Patient Outcomes
  • Expanding Access to Supplemental Benefits in Medicare
  • Telemedicine Adoption Linked to Reduced Low-Value Care in Medicare
  • Challenges and Solutions for Medicare Beneficiaries Struggling with Prescription Drug Costs
  • Americans Rank Healthcare Affordability Above Inflation and Federal Deficit
  • Exploring the Economic Impacts of Healthcare Time Costs

There's still time to register!

2025 Virtual V-BID Summit
"20 Years of Putting Patients First"

On March 12, 2025, 12pm – 4pm EST, the 2025 Virtual V-BID Summit will celebrate 20 years of advancing patient-centered, value-based care. Keynote panelists include Stephanie Carlton, CMS Chief of Staff and Acting Administrator, as well as Jim Parker and Nicholas Uehlecke, both of whom served in the first Trump administration. Other sessions include a Fireside Chat with Michael Chernew, PhD, V-BID Center co-founder and current Chair of the Medicare Payment Advisory Commission.

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Medicare Ends V-BID Model Over High Costs Despite Improved Patient Outcomes

The MA V-BID model, aimed at improving healthcare access and outcomes by lowering cost-sharing for high-value services, was terminated by CMS due to excessive costs, totaling $4.5 billion over two years. While the model improved patient adherence and preventive care, its rising costs—partly driven by higher risk scores and rebate increases—made it unsustainable. Experts argue that V-BID’s failure in Medicare Advantage reflects systemic issues rather than flaws in the concept itself, as evidence suggests V-BID can enhance care quality and equity.

Expanding Access to Supplemental Benefits in Medicare Advantage and Traditional Medicare

A survey found that under-65 Medicare beneficiaries in traditional Medicare are less likely to have coverage for these services compared to those in Medicare Advantage, though usage rates are similar among those with coverage. Cost remains a significant barrier, with many beneficiaries—especially those without coverage—skipping dental and vision care due to affordability concerns. Policymakers are considering expanding and standardizing these benefits to improve access and affordability for Medicare beneficiaries.

Telemedicine Adoption Linked to Reduced Low-Value Testing and Costs in Medicare Beneficiaries

A recent study examined the relationship between telemedicine adoption and low-value care among Medicare beneficiaries. Researchers analyzed data from over 2.3 million patients across 286 U.S. health systems and found that high telemedicine adoption was associated with a modest reduction in the use of 7 out of 20 low-value tests, particularly point-of-care screenings. The study’s findings challenge concerns that telemedicine increases Medicare spending, instead suggesting it may improve care quality while reducing costs.

Challenges and Solutions for Medicare Beneficiaries Struggling with Prescription Drug Costs

A recent study explored how Medicare beneficiaries and healthcare providers navigate the rising costs of prescription drugs. Many Medicare enrollees rely on medications for their well-being, yet they often delay filling prescriptions, switch to generics, or use discount programs due to affordability concerns. Providers acknowledge that cost is a significant barrier to medication adherence, with some actively helping patients find lower-cost options, while others feel ill-equipped or lack the necessary resources.

Americans Rank Healthcare Affordability Above Inflation and Federal Deficit as Top National Concern

A recent Pew survey reveals that 67% of Americans now view the affordability of healthcare as a very big national problem, marking a significant increase from last year’s 57%. This concern has overtaken inflation and the federal budget deficit in priority for many Americans.

Time is Money: Exploring the Economic Impacts of Healthcare Time Costs

A new report by the Center for Innovation & Value Research highlights the economic burdens of time costs faced by patients and caregivers. These include time spent on healthcare activities and the loss of personal time, such as work and family commitments. The report emphasizes the need for better recognition of time costs in research and policy, particularly how they vary by individual needs and how they impact long-term health outcomes and financial stability

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