5 March 2018 - UnitedHealth Group, the nation’s largest health insurance company, says it’s paying nearly 60% of its reimbursements – or $64 billion – via value-based care models that are rapidly replacing fee-for-service medicine in the U.S., according to the company.

Value-based pay is tied to health outcomes, performance and quality of care of medical-care providers who contract with insurers via alternative payment vehicles like accountable care organisations, a delivery system that rewards doctors and hospitals for working together to improve quality and rein in costs. In these models, doctors and hospitals take on more risk that they can streamline the care, improve quality and eliminate bureaucratic inefficiencies.

In UnitedHealth Group’s case, nearly 60% of the insurer’s $130 billion in annual medical spending is via value-based models , according to a new annual report released Monday. One in three UnitedHealth plan enrolees now receive medical care from medical care providers who are paid via these alternative models.

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