The Congress should replace the current Medicare Advantage (MA) quality bonus program with a new MA value incentive program that:
- scores a small set of population-based measures;
- evaluates quality at the local market level;
- uses a peer-grouping mechanism to account for differences in enrollees’ social risk factors;
- establishes a system for distributing rewards with no “cliff” effects; and
- distributes plan-financed rewards and penalties at a local market level.