Value-Based Care Takes Huge Leap Forward

posted by AHIP

on October 25, 2019

More than a third of health care payments – representing 77% of the covered population – flowed through payment models that reward value over volume

WASHINGTON, D.C. – Matt Eyles, president and CEO of America’s Health Insurance Plans (AHIP), issued this statement following the release of the latest survey results from the Health Care Payment Learning & Action Network (HCP LAN). The survey found that in 2018, 35.8% of U.S. health care payments – representing about 226.5 million Americans and 77% of the covered population – flowed through advanced payment models (APM) that reward value of care over volume of services:

“Americans deserve high-quality, affordable health care choices, and value-based care arrangements are essential to delivering on that commitment. As consumers’ bargaining power, health insurance providers have been a key driver of value-based strategies. Working together with doctors, hospitals, and other health care providers, we improve quality while bending the cost curve. Together, we study the evidence to find the most effective approaches to care, create new care models to improve patients’ health and care experience, improve value while reducing the administrative burden on doctors, and share in the risks and rewards to ensure that we are delivering on the same goals.

“The great progress in adopting advanced payment models shows how much we can achieve when the public sector and private market work together toward a common goal. And with more than half of the payments in Medicare Advantage flowing through alternative payment models, the commitment of health insurance providers is clear. Value-based care is the future, and the private market is delivering positive, measurable change.

“A stronger American health care system is one that is centered on delivering higher quality, more choices, and better experiences at a lower cost. By making health care more effective and affordable, we can help ensure that every American has access to coverage that provides them with financial stability and peace of mind.”

About AHIP
AHIP is the national association whose members provide coverage for health care and related services to millions of Americans every day. Through these offerings, we improve and protect the health and financial security of consumers, families, businesses, communities and the nation. We are committed to market-based solutions and public-private partnerships that improve affordability, value, access, and well-being for consumers. Visit for more information.

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