CHA News Article

CMS Issues Final Rule Updating ACO Benchmarking Methodology

The Centers for Medicare & Medicaid Services (CMS) has issued the attached final rule revising the benchmarking methodology for accountable care organizations (ACOs) participating in the Medicare Shared Savings Program to incorporate regional spending differences, rather than considering only an ACO’s historical financial performance. CMS has finalized a slower than proposed phase-in of the regional expenditures, reducing the weight of the regional adjustment from 35 percent to 25 percent in the first ACO agreement period, and from 70 percent to 50 percent for the second agreement period. Benchmarks for all ACOs eventually will incorporate 70 percent regional expenditure data. More information is available in CMS’ fact sheet