Next Generation ACOs saved Medicare $62M in 2016

Next Generation ACOs saved Medicare about $62 million during their first performance year in 2016, CMS said Aug. 27.

The Next Generation program requires ACOs to take on more financial risk than other ACO models. However, it also offers a bigger payoff.

On Aug. 9, CMS issued a proposed rule that would make sweeping changes to the Medicare Shared Savings Program, including overhauling the way ACOs share in risks and rewards. The redesigned program — which CMS has dubbed "Pathways to Success" — would expand ACO participation agreements from three years to five years and offer eligible ACOs two participation options: "basic" and "enhanced."

The basic track would allow ACOs to participate under an upside-only agreement for one to two years before gradually phasing in higher levels of risk. Under the enhanced track, ACOs would take on risk and qualify as an advanced APM immediately.

More articles on ACOs:
Medicare to cover some home visits for Next Gen ACOs
CMS pushes ACOs to take on risk with overhaul of MSSP: 7 things to know
Baylor Scott & White's ACO strikes major value-based deal with BCBS of Texas

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