The goal of [the Center for Medicare & Medicaid Innovation] (CMMI) is to identify demonstration models that aim to improve quality of care OR reduce spending. The Department of Health and Human Services (HHS) may expand models nationwide if the Secretary determines that either criterion is met.
In 2010, the nonpartisan Congressional Budget Office (CBO) projected that CMMI would produce $1.3 billion in net savings over the 10-year budget window. In September 2023, CBO released a report updating the agency’s analysis on the budgetary impacts of CMMI, finding:
“CBO previously estimated that CMMI’s activities would reduce net federal spending but now estimates that they increased that spending during the first 10 years of the center’s operation and will continue to do so in its second decade.”
In 2011, CMMI received $10 billion in mandatory funding to identify, develop, test, and evaluate demonstration models in federal health care programs. CMMI received another $10 billion in funding in 2020 and will continue to receive an additional $10 billion in each subsequent decade.
Source: House Budget Committee