CMS releases final ACO rule

The U.S. Centers for Medicare and Medicaid Services (CMS) has released a final rule that it says will improve how it pays accountable care organizations (ACOs) in its Medicare Shared Savings Program.

The rule bases one of the payment factors on whether ACOs are able to deliver high-quality care at a lower cost compared to other providers in their region. It also updates benchmarks for ACOs that continue their participation in the program after an initial three-year agreement period, and adds a participation option to encourage transition to performance-based risk arrangements.

In 2014, ACOs had a combined total net program savings of $411 million, according to CMS. The program already includes 430 organizations across the U.S. that serve more than 7.7 million Medicare beneficiaries, CMS said.

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