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CMS Proposes "Pathways to Success" Overhaul of Medicare’s ACO Program

The Center For Medicare and Medicaid Services (CMS) announced that it is proposing an overhaul of Medicare's ACO program.

According to the CMS article dates Aug.09, 2018, Pathways to Success was developed based on a comprehensive analysis of the performance of ACOs to date. Despite the program’s intent, the Shared Savings Program has shown increases in net spending for CMS and taxpayers, in part because the majority of ACOs – 460 of the 561 or 82% of all ACOs in the Shared Savings Program in 2018 – are not taking on risk for increases in costs. Data on ACO performance to date has shown that ACOs that are not at risk for cost increases end up increasing Medicare spending in aggregate. Pathways to Success is designed to move in a new direction and advance five goals: Accountability, Competition, Engagement, Integrity, and Quality. The projected financial impact of the proposal would be savings to Medicare of $2.2 billion over ten years.

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