Is the Direct Contracting Model Similar to Medicare Advantage? Francois de Brantes Has An Answer

April 2, 2021
Briana Contreras

,
Peter Wehrwein

In this third of a four-part video series, Signify Health senior vice president of Episodes of Care, François de Brantes, speaks with Managed Healthcare Executive about value-based care, the toxic incentives in healthcare, how the Direct Contracting Model differs from Medicare Advantage and more.

Below you'll find a brief excerpt from the transcript of our recent podcast interview with François de Brantes. They have edited for clarity and length.

Is the Direct Contracting Model similar to Medicare Advantage?

The mechanics are similar. The difference is that in Medicare Advantage, Medicare contracts with a Medicare managed care organization, and that Medicare managed care organization can continue to pay 100% of the care for the beneficiaries that enroll in the MA plan fee for service. The chassis of Medicare Advantage plans are a fee-for-service adjudication process.

Related: Meet the Board: François de Brantes of Signify Health Talks the Direct Contracting Model, Value Based Care and Toxicity of Fee for Service

Now, some of them are fairly innovative in the way that they create the reimbursements with the providers in their network. But a lot of them simply continue to pay a fee for service. So yes, it's like Medicare Advantage in the sense that you're pre-paying an entity a fixed amount for a beneficiary.

The difference is that you're now relying on a provider organization or, you know, some affiliate of a provider organization, to contract with providers, hopefully in a different way.