What is the role of the CMS Innovation Center (CMMI) in payment reform?

• A. It sets Medicare premium amounts.
• B. It tests and scales new payment and delivery models to improve care and lower costs.
• C. It manages hospital discharge summaries.
• D. It funds only rural health initiatives.

Answer: (B)

The role of the CMS Innovation Center is to test and scale new payment and delivery models to improve care and lower costs. It does this by running pilot programs across Medicare (and sometimes broader settings), rigorously evaluating how these models affect quality and total spending, and expanding successful approaches to more providers and beneficiaries. This moves payment away from pure fee-for-service toward value-based incentives, using mechanisms like bundled payments and various accountable care approaches to reward better outcomes and efficiency. Examples include programs that test payment for entire episodes of care or shared savings for improved quality, with the goal of identifying models that genuinely reduce costs while maintaining or improving care. It does not set Medicare premium amounts, it does not handle hospital discharge summaries, and its scope is nationwide rather than limited to rural initiatives.