MediCal Explained: What Are Alternative Payment Models?

Over the past decade, the Centers for Medicare & Medicaid Services (CMS) has increasingly used health care provider payment reforms that encourage better value in the health care system. These payment reforms are known as alternative payment models (APMs) and are defined as a provider payment method that uses financial incentives for the provision of care that is high-quality, cost-efficient, or both. This issue brief explores how Medi-Cal, California’s Medicaid program, has been developing APMs to align with these federal initiatives and state financial and policy goals.