CMS plans to pay some doctors on a monthly basis to care for Medicare patients, a 'profound change' for the US health program for the elderly.
A new kind of doctor's office that charges a monthly fee to insurers just got a big endorsement from the Trump administration.announced a new primary care initiative that
In the US, the Medicare program pays for care for the elderly and some disabled individuals, and is the biggest purchaser of healthcare, giving it significant influence over how medicine is practiced."That is a very profound change," Iora Health CEO Rushika Fernandopulle,, told Business Insider."We and other people see that if we do this with this sort of payment we can do a different sort of care.
Under the new initiative, which is voluntary for doctors and set to begin in 2020, companies like Iora could stand to get more business from those in traditional Medicare plans. CMS said on Monday that it's expecting to include about 25% of Medicare participants in the new model, or nearly 11 million people.
Iora has raised more than $250 million from investors like GE Ventures, Khosla Ventures, Temasek Holdings, and Humana who are betting that the model could be the future of healthcare in the US, especially for the elderly population.
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