H.R. 1 Resource Center

CMS Innovation Center to Change Model Portfolios

March 17, 2025
Faridat Animashaun

The Centers for Medicare & Medicaid Services (CMS) Innovation Center on March 12 announced changes to its payment model portfolio, including early termination of select models and discontinuation of planned initiatives.  

CMS estimates savings of almost $750 million by ending the following models by Dec. 31:  

  • Maryland Total Cost of Care (2019–2026) 
  • Primary Care First (2021–2026)  
  • End-Stage Renal Disease (ESRD) Treatment Choices (2021–2027)  
  • Making Care Primary (2024–2034)  

The agency will offer guidance and technical support to affected participants, including guidance on other regulatory options for advanced primary care payment.  

Additionally, CMS no longer will pursue two previously announced models that had not yet launched, based on the flexibility provided by President Trump’s rescission of Executive Order 14087 on Jan. 20:  

  • Medicare $2 Drug List, which aimed to provide low-cost generic drugs to Medicare beneficiaries 
  • Accelerating Clinical Evidence, designed to encourage drug manufacturers to complete confirmatory trials for accelerated approval drugs 

CMS says its other active models can meet the Innovation Center’s statutory mandate — either as currently designed or with future modifications — and therefore will continue moving forward. The center plans to release a new strategy based on the guiding principles of disease prevention, patient empowerment, and driving choice and competition. 

Contact Director of Policy Rob Nelb, MPH, at rnelb@essentialhospitals.org or 202.585.0127 with questions. 

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