A summary of health reform initiatives which become effective in 2012:

2012 Changes to Medicare

• Make Part D cost sharing for full benefit dual eligible beneficiaries receiving home and community based care services equal to the cost sharing for those who receive institutional care.



• Allow providers organized as accountable care organizations (ACOs) that voluntarily meet quality thresholds to share in the cost savings they achieve for the Medicare program.
• Reduce Medicare payments that would otherwise be made to hospitals by specified percentages to account for excess (preventable) hospital readmissions.
• Establish a hospital value based purchasing program in Medicare and develop plans to implement value based purchasing programs for skilled nursing facilities, home health agencies, and ambulatory surgical centers.
• Provide bonus payments to high quality Medicare Advantage plans.
• Reduce rebates for Medicare Advantage Programs

Health Care Reform 2012: Other Changes

• No other 2012 health care reforms are planned based upon the original law.