CMS Innovation Center Cancels Eight Models Ahead of New Strategy Announcement

April 9, 2025

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The CMS Innovation Center (CMMI) announced on March 12 that certain payment models will be canceled or end by Dec. 31, 2025. The declaration was made after a review of the model portfolio by the Trump administration, which asserts that models must reduce spending in addition to maintaining or improving quality. The Biden administration sought to position improvements in quality that did not increase costs as an appropriate goal as well. The eight impacted models will result in nearly $750 million in savings: Making Care Primary, Primary Care

First, Vermont All Payer ACO, Maryland Total Cost of Care Model, Maternal Opioid Use Model, End-Stage Renal Disease Treatment Choices, Medicare Two Dollar Drug List Model, and Accelerating Clinical Evidence Model. CMMI says it will help participants in the affected models minimize disruption to their operations and the beneficiaries they serve, but did not provide details about what support it may offer.

The agency also plans to announce a new strategy based on “guiding principles to make Americans healthier by preventing disease through evidence-based practices, empowering people with information to make better decisions, and driving choice and competition.” 

Initiatives

Calls grow for Drug Patent reform

In a recent blog post, the Pharmaceutical Care Management Association (PCMA) highlighted increased attention to pharmaceutical companies’ abuse of drug patents. Last month, the Supreme Court unanimously ruled in favor of a generic drugmaker in a “skinny labeling” case, a victory for patients. Skinny labels allow generic and biosimilar competitors to launch products for non-patented indications, helping accelerate […]
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August 11, 2026

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perspectives

AHIP calls for Bipartisan reform to address health care cost drivers

On July 23, AHIP President and CEO Mike Tuffin wrote an opinion piece in The New York Times saying, “common-sense bipartisan reforms are needed to promote competition in care delivery and prescription drugs, protect consumers from providers and drugmakers’ anticompetitive practices and transition away from the perverse incentives of fee-for-service medicine.” Tuffin notes that health […]
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August 11, 2026

EGWP marketplace medicaid Medicare

Solutions

PCMA urges preserving patient access and flexibility in new fertility benefits rule

PCMA recently submitted comments to HHS, DOL, and the Treasury (the Departments) in response to the proposed rule establishing a new category of limited excepted benefits for fertility services. PCMA supports the Departments’ goal of expanding access to fertility care while encouraging employer innovation but urged several targeted refinements to ensure the framework is operationally […]
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August 11, 2026

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