CHA News Article

CMS Announces Next Generation ACO Model

The Centers for Medicare & Medicaid Services (CMS) yesterday announced its Next Generation Accountable Care Organization Model, which is intended for ACOs experienced in coordinating care for populations of patients. ACOs participating in the model would assume higher levels of financial risk and reward than are available under the current Pioneer Model and Shared Savings Program. The new model will use prospectively-set benchmarks intended to reward quality, improvement and efficiency, and will ultimately transition away from an ACO’s recent expenditures when setting and updating the benchmark. CMS expects approximately 15 to 20 ACOs to participate in the Next Generation ACO Model with representation from a variety of provider organization types and geographic regions. The model will consist of three initial performance years and two optional one-year extensions.  

CMS will accept ACOs into the Next Generation ACO Model through two rounds of applications in 2015 and 2016, with participation expected to last up to five years. For round one consideration, interested organizations must submit a letter of intent no later than 8:59 p.m. (PT ) on May 1, and must submit applications electronically no later than 8:59 p.m. (PT) on June 1. Additional information about the application process is available on CMS’ website. A document addressing frequently asked questions is attached.