Better Medicare Alliance Responds to CMS’s Decision to Terminate the Medicare Advantage VBID Model, Impacting Beneficiaries and Innovation

WASHINGTON — Better Medicare Alliance, the nation’s leading research and advocacy organization supporting Medicare Advantage, responded today to the Centers for Medicare & Medicaid Services’ (CMS) decision to terminate the Medicare Advantage Value-Based Insurance Design (VBID) model at the end of 2025:

“Better Medicare Alliance is deeply disappointed by the Centers for Medicare & Medicaid Services’ (CMS) decision to end the Medicare Advantage Value-Based Insurance Design (VBID) model at the conclusion of 2025,” said  Mary Beth Donahue, President and CEO of Better Medicare Alliance. “Terminating the only model serving Medicare Advantage Organizations (MAOs) will have negative consequences on nearly 9 million seniors and people with disabilities, and particularly on minorities and those in low-income communities who rely on essential benefits like in-home support services, groceries, and transportation.”

This decision comes despite CMS’s previous recognition of the VBID model’s potential to improve health outcomes and reduce costs for Medicare beneficiaries. The model, which was extended through 2030 just last year, has proven valuable in advancing the goals of person-centered, value-based care by allowing plans to tailor benefits to address beneficiaries’ unique needs. It has facilitated innovative approaches to care delivery, such as targeted interventions for individuals with chronic conditions, improved access to supplemental benefits, and programs addressing social determinants of health.

Terminating the VBID model will disrupt progress made in achieving more equitable and affordable care for beneficiaries. It will also limit Medicare Advantage’s ability to test and scale strategies that reduce costs while improving health outcomes, potentially leaving vulnerable seniors without critical benefits they desperately need.

We urge CMS to reconsider this decision and work collaboratively with stakeholders to build on the VBID model’s successes, ensuring continued innovation and value for Medicare beneficiaries.

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Better Medicare Alliance is a community of more than one million grassroots beneficiaries and 200+ ally organizations working to improve health care through a strong Medicare Advantage. Learn more at  www.bettermedicarealliance.org.