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Eight Important FAQs on Medicare Bundled Payment Models

Posted on Wednesday, January 24, 2018 4:37 PM

In bundled payment models, Medicare establishes a total budget for all services provided to a patient throughout a given episode of care. If the episode’s cost of services comes in below budget, the providers may share in Medicare savings; alternatively, if providers’ costs goes over budget, the providers may incur losses. In some cases, bundled payment models can span across multiple health care settings. Participation in some of the Medicare bundled payment models is voluntary; for other models, participation is mandatory for hospitals in selected areas of the country.

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Kaiser Health News is a nonprofit news service covering health issues. It is an editorially independent program of the Kaiser Family Foundation that is not affiliated with Kaiser Permanente.


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