Discuss the concept of value-based purchasing, as required by the Affordable Care Act.

Expert Solution

Affordable Care Act was passed in the year 2010. The objective of this policy is to cover maximum Americans by offering discounted health insurances through tax credits. The objective of passing this law

To provide affordable health insurance coverage to the citizens of USA
To expand the Medicaid program, thus covering all citizens below federal poverty level
Encourage and facilitate innovative medical delivery methods

Value-based purchasing is the program that aims at linking the provider payments with their performance. This helps in encouraging health care providers to work efficiently and keep improving their performance.

The inclusion of value-based purchasing in Affordable Care Act incorporates pay-for-performance feature in the reimbursement and compensatory dimension. This pay-for-performance enhances accountability and responsibility among the providers, thereby reducing Healthcare system costs substantially.

keosha answered 1 year ago

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