Value-based care models can help close care gaps for Medicaid beneficiaries

Value-based care is a health care delivery model that compensates providers based on patient health outcomes rather than the current fee-for-service model driven by service volume. By incentivizing providers to focus on preventive care, care coordination, and managing chronic conditions, value-based care can help improve the overall health of their patient panel, thus lowering the cost of care by reducing the need for hospitalizations and emergency department visits. Additionally, value-based care can improve access to care for Medicaid beneficiaries by ensuring they receive the proper care at the right time, in the right place. While value-based care is particularly well suited for providers serving Medicaid patients, its use does present challenges, particularly for independent primary care practices in low-income communities. Medicaid is less lucrative, is difficult to administer, and health literacy issues often persist.