An Update on the Medicare Shared Savings Program

Accountable care organizations (“ACOs”) have been marketed as perhaps the biggest development in Medicare reimbursement since the transition from cost reimbursement to prospective payment. The Centers for Medicare & Medicaid Services (“CMS”) is hoping that ACOs and the Medicare Shared Savings Program (“MSSP”) will successfully reel in health care spending while improving the quality of care to Medicare beneficiaries.

As of January 2013, approximately 250 ACOs provided care to over 4 million Medicare beneficiaries. Of these, the 106 that were selected to participate in the MSSP roughly doubled the number of Medicare beneficiaries receiving care from an ACO. Although the number of ACOs has dramatically increased since the first performance period began on April 1, 2012 (when there were only 27 ACOs), the geographic distribution of ACOs remains largely uneven.

Originally published in the Advisory Board Company - Health Care Law Roundtable.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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