New Jersey enacted legislation for Medicaid ACOs in Camden, Trenton, Newark and other cities last year. Under the program, ACOs would receive a portion of the money Medicaid saves through reduced emergency department visits and other hospital services. Medicaid is half funded by the federal government, though, so the program is still awaiting a federal nod before providers can jump in.
New Jersey’s Dept. of Human Services is proceeding and writing ACO regulations it expects to issue in late summer or early fall. Once federal approval is in place, the state will begin to accept Medicaid ACO applications from urban healthcare providers.
New Jersey Sen. Joseph Vitale sponsored the ACO legislation and said the program will “save the state and the federal government millions of dollars a year,” according to the report.
Related Articles on ACOs:
Dr. Donald Berwick Defends ACOs in Expert Roundtable
Survey: 55% of Payors Plan to Participate in ACOs Over Next 3 Years
Survey: 57% of Hospital Leaders Still Unsure About ACO Participation
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