Strategic Direction Frequently Asked Questions

How does the 2025 strategic direction align with previous strategic directions for the CMS Innovation Center?

During the last 15 years, the Innovation Center has tested alternative payment models that positioned states, payers, health systems, and providers as the catalysts for change. The goal of these pilot programs is to improve quality and outcomes and reduce costs for taxpayers. The Innovation Center has made investments in the necessary infrastructure to support broad system reform. Our vision is to double down on our commitment to value-based care and take the learnings from these previous investments to build a health system that empowers people to drive and achieve their health goals and Make America Healthy Again.

How will the Innovation Center’s strategy support the transition from fee-for-service to value-based care?

The Innovation Center is continuing to move forward with value-based payment and care delivery models that show the greatest promise for expansion. We will:

• Update existing and design new Original Medicare models to leverage payment and regulatory flexibilities, such as waivers and beneficiary enhancement incentives
• Expand our work to test improvements in Medicare Advantage and Medicaid
• Drive better spending and outcomes for prescription drugs and promote efficiency through devices and technology
• Continue to work with states to drive multi-payer approaches to state-level delivery system transformation via existing and new model concepts
• Focus on the best ways to include independent providers in value-based care and address additional patient types

Collectively, updated and new models will enable the Innovation Center to realize our vision of building healthier lives through the permanent Medicare and Medicaid programs and the Children’s Health Insurance Program (CHIP).

How will making America healthier protect federal taxpayers and lower health care costs?

The 2025 strategy is anchored in the Innovation Center’s statutory mandate to protect taxpayers by producing cost savings and ensuring quality health outcomes consistent with the aims of value-based care. The Innovation Center’s focus on prevention, choice, and competition will collectively drive down health care costs. Preventive care lowers expenditures by delaying or eliminating onset or reducing the severity of costly diseases and other conditions. Breaking down barriers to participation in models will promote broader provider choice and marketplace competition, which will also reduce costs.

Does the new Innovation Center Strategy address rural communities?

The updated strategic direction will pursue models that drive taxpayer savings while creating custom pathways to account for the unique challenges of rural health care.

How will existing models be modified?

The Innovation Center’s existing models will be modified to emphasize healthy living and ensure cost savings to protect federal taxpayers. Modifications to existing models will include embedding preventive care, as well as efforts to increase access to and uptake of primary, secondary, and tertiary prevention — including incentives for both people and providers and opportunities to engage in community-based initiatives.

When will the Innovation Center announce new models tied to this strategy?

The Innovation Center is looking forward to providing more information on new models in the coming months.

What are opportunities for groups to learn more about next steps for the Innovation Center’s strategic direction?

The Innovation Center will be posting details for listening sessions and other events on our Strategic Direction webpage. You also can sign up for the CMS Innovation Center listserv to receive regular email updates from the Innovation Center.