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Value-Based Payment

For many states, a critical component of Medicaid delivery system reform is payment reform, specifically implementing value-based payment approaches (i.e. payment models that range from rewarding for performance in fee-for-service (FFS) to capitation, including alternative payment models and comprehensive population-based payments). Within the Medicaid Innovation Accelerator Program (IAP) functional area of value-based payment (VBP) and financial simulations, the Centers for Medicare & Medicaid Services (CMS) provided technical assistance  to Medicaid agencies in building and strengthening their VBP capacity as they design and implement Medicaid delivery system reforms. Medicaid agencies could choose among technical assistance programs in three different areas: general VBP and financial simulations; maternal and infant health VBPs; and children’s oral health VBPs. IAP provided individualized technical assistance to participating Medicaid agencies and, developed resources and tools that could be used by Medicaid agencies.