Delving Deeper Into the Direct Contracting Model

The Direct Contracting Model is a new six-year value-based payment program from the Center for Medicare & Medicaid Innovation (CMMI), which builds on Medicare Advantage, ACO models and commercial best practices. The first Performance Year 2021 (PY2021) began on April 1, 2021.

As of April 9, 2021, CMS has suspended the application process for the second year of the Direct Contracting Model. While the status of first-year participants (April 1 to Dec. 31, 2021) hasn’t changed, the program’s future for additional applicants is unknown. While the long-term future of the program remains to be seen, we wanted to shed some more light on what the program entails, and how it differs from existing value-based programs. Keep reading for some frequently asked questions regarding Direct Contracting:

Who Can Participate in Direct Contracting?

Direct Contracting broadens the potential pool of participants, allowing for providers that have historically been excluded from value-based payment programs to enroll in the program.