State Strategies: Value-Based Payment for Medicaid Populations with Complex Care Needs

Erin Taylor
Mary Beth Dyer
Michael Bailit
April 2017

This resource examines Medicaid payment reform strategies for populations who receive LTSS. It includes case studies of state programs in Tennessee, Minnesota, and Arizona. 

  • A growing number of states are implementing value-based payment programs to deliver LTSS to Medicaid populations with complex needs.
  • Payment models include pay-for-performance, supplemental per-member per month payments, shared savings/shared risk, and episode-based payments.
  • Measurement strategies for value-based LTSS payment may need to consider less traditional domains such as quality of life, independence, and functional status.
  • States can support and direct value-based strategies in various ways, including grants or capacity-building opportunities for LTSS providers.
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