Center for Health Policy

State Innovation Models: What other states are doing to improve health care

“The primary aim of the Affordable Care Act is to reduce the number of uninsured Americans. Even if the new federal health law accomplishes that goal, states still must grapple with the relatively high cost and low quality of U.S. health care…Under the current “fee-for-service” system, health care providers are paid per office visit or procedure performed. The key to cutting costs and improving quality, many experts believe, is to reward health care providers for keeping their patients healthy and keeping costs down, instead of giving them a financial incentive to provide as many services and procedures as possible. That’s where states come in.”

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