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AAMC, Other Stakeholders Urge HHS Not to Cancel Direct Contracting Model

February 18, 2022

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CONTACTS
Gayle Lee, Director, Physician Payment & Quality

The AAMC joined 222 health organizations in a Feb. 14 letter to the Department of Health and Human Services Secretary Xavier Becerra asking the Center for Medicare and Medicaid Innovation (CMMI) to refine rather than end the Global and Professional Direct Contracting Model.

The letter was sent after learning that Becerra and the White House are reconsidering the future of Direct Contracting, including the possibility of cancelation. Direct contracting is an accountable care model from the CMMI that builds on the Next Generation Accountable Care Organizations model while redesigning health care delivery and payment. Participants in the model have incentives to provide preventative services, manage complex chronic diseases, and coordinate care.

The letter expressed concern that halting the model would undermine the move to value-based models, which can improve quality of care and make care more affordable. The letter explained that a better option would be to adjust the model by limiting participation to certain types of direct contracting entities (DCEs), such as provider-led DCEs, and placing additional guardrails and beneficiary protections.

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