Traditional fee-for-service payment models reward volume over health outcomes or quality performance, and do not incentivize care providers to prioritize affordability results or patient health outcomes like closing health disparities. Colorado intends to have 50% of Medicaid payments tied to a value based arrangement by 2025. To address these opportunities, the Department has implemented payment reform programs for primary care and maternity and continues to develop new payment methodologies that move away from fee-for-service payment and toward APMs that tie financial rewards to performance measures that achieve shared goals, like improving patient health, closing disparities and/or improving health care affordability.
