Financial Structures

While integrating responsibility and payment for all Medicare and Medicaid services into one entity has the potential to improve care coordination and improve the health of dual eligibles, dangers exist.  Poorly designed risk-sharing and capitated payment models could lead to delays and denials of medically necessary care or “cherry-picking” of healthy, less costly enrollees.  If the incentives to share savings are not structured carefully, the results can be decisions that are neither person-centered nor likely to improve care.