New Medicare trial may boost digital care
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A new Medicare payment trial will determine whether the federal government can promote digital health applications like remote monitoring to manage chronic illnesses.
Why it matters: Traditional Medicare currently pays care providers based on the volume of individually billable services they deliver, which makes digital health adoption difficult.
How it works: The new model, dubbed ACCESS, would pay participating Medicare providers and suppliers a fixed amount to manage chronic issues including hypertension, diabetes and depression.
- It sets specified patient outcomes for receiving full payments for the services.
- The program would widen the reach of tools for chronic-disease management, such as remote monitoring, and is slated to run for 10 years.
- It will need to save taxpayer dollars or be cost-neutral in order to continue permanently.
The initiative could provide an incentive for hospitals and health systems to invest more in digital care infrastructure.
- Centers for Medicare and Medicaid Services also plans to create a directory for digital health vendors to list available technology.
What they're saying: The model announced last week is the clearest sign the Trump administration has given about its vision for health tech, said Mara McDermott, CEO of Accountable for Health, a value-based payment advocacy organization.
- This model appears to focus on technology-enabled hybrid care "to fill the major gaps between clinic visits, [where] patients spend 99.99% of their life," said Constantinos Michaelides, medical director at UMass Memorial Health.
Between the lines: Obama administration health official Andy Slavitt's investment firm, Town Hall Ventures, collaborated with CMS on the model.
Zoom out: The rollout comes amid lingering uncertainty around the future of Medicare telehealth flexibilities and the Hospital at Home program, both of which have expanded access to and use of technology in patient care. Both lapsed during the government shutdown and are set to expire again at the end of January if not extended.
- Hospital at home startup Inbound Health closed last week, as its CEO blamed the absence of a long-term extension of the program.
- The ACCESS pilot wouldn't have saved Inbound, but it could throw others a lifeline.
What's next: Applications for the program open on Jan. 12, 2026, and the model launches on July 1.
