CMS to end Next Generation ACO model after 2021

CMS won't extend its Next Generation ACO model, though the Biden administration will let Next Gen ACOs apply for direct contracting next year. 

The Next Gen model is set to end Dec. 31, the administration said May 21. Hospitals and ACO organizations had asked the Biden administration to establish a permanent full-risk ACO option based on the Next Generation Accountable Care Organization model.

"We understand the constraints and narrow time frame the CMS Innovation Center had to work under to prolong the model and disagree with findings in formal evaluations, which we believe were flawed," the National Association of ACOs said in a May 21 news release. "However, we appreciate [the] move to allow Next Gen ACOs a limited opportunity to apply for Direct Contracting ... starting next year. This will be a viable path for some to continue participation in an innovative accountable care model like Direct Contracting."

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