Humana: Value-based care lowers costs

LOUISVILLE, Ky. – Value-based care lowers costs and keeps Medicare Advantage members healthier, according to the 10th annual Value-Based Care Report released today by Humana. 

The 2023 report shows that MA patients receiving care under value-based arrangements spent more time with their primary care physician and were more likely to receive preventive care, with fewer hospitalizations.  

According to the report, VBC enables: 

• A team-based holistic approach to patient care, quarterbacked by their physician with greater support from a multi-disciplinary team, including nurses, medical assistants, pharmacists, social workers and others.  

• Coordination across transitions in care, such as after hospital discharge, and collaboration with patients and their care team to minimize the risk of ending up back in the hospital. 

• Technology and data usage to help catch and eliminate “gaps in care,” and make sure patients’ needs do not fall through the cracks or get lost or forgotten. 

• More resources and incentives to manage health-related social needs, such as transportation benefits and community support programs. 

"The data are clear: Value-based care works," said Dr. Kate Goodrich, chief medical officer at Humana. "As our report shows, this smarter health care model improves outcomes for Medicare Advantage members and allows primary care physicians to practice medicine at the top of their license and develop meaningful relationships with patients. At Humana, we are proud to lead the way on value-based care for our Medicare Advantage members, and we will continue to look for ways to expand this approach into other lines of business." 

Other key findings from the report: 

• Patients receiving health care under value-based care arrangements grew by 2.3 million over the past decade. 

• 2022 showed a record 70% of individual Medicare Advantage patients aligned with value-based care providers. 

• Value-based care patients were less likely to spend time in the hospital. There were 30.1% fewer in-patient admissions for value-based care patients compared with original Medicare beneficiaries in 2022. 

• Value-based care patients were more likely to receive preventive care. Specifically, value-based care patients completed preventive screenings at a 14.6% higher rate than Medicare Advantage members not in a value-based care arrangement.  

• Value-based care arrangements lead to cost savings for patients. In 2022, Humana Medicare Advantage value-based contractual arrangements saved 23.2% in medical costs compared to original Medicare. 

• Humana research found that patients cared for by VBC physicians had significantly lower acute care usage and potentially avoidable events.