Direct Contracting Model Insights and Future Directions

This technical report discusses the Direct Contracting model within Medicare, focusing on its objectives, challenges, and future directions. It outlines the shift from fee-for-service to value-based care, emphasizing the importance of capitated payments. The report highlights insights shared by David Ault, a former senior advisor at CMMI, during a webinar, addressing the model's performance and the need for effective communication between Direct Contracting Entities (DCEs) and providers. Key issues include payment discrepancies and the impact of the COVID-19 pandemic on operations. The report also notes that 2022 is viewed as a transition year, with minimal policy changes expected and a focus on maintaining stability. Additionally, it discusses the importance of addressing health equity and diversity in future models, as well as the potential for benchmarking changes and incentives for DCEs serving underserved communities. The report concludes with a call for stakeholder input on upcoming changes.