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Executive Order Pauses CMS Bundled Payments

As a result of the recent executive order signed by President Trump, which froze all new regulations, the implementation of the new expanded bundled payment model by the Centers for Medicare and Medicaid Services (CMS) has been pushed back 60 days. The final rule for this model was issued in December and created mandatory bundled payment programs for cardiac conditions, and expanding the scope of an existing bundled payment program for joint replacement episodes.

While bundled payments were viewed as a way to help hospitals control costs and provide increased quality to patients, many including the new Health and Human Services Secretary Tom Price had concerns. They feel that enforcing a mandatory program without first proving its effectiveness may lead to bigger problems down the road.

CHAP will continue to monitor this story and provide updates as they are made available. 

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