CHA News Article

Proposed Rule Updates ACO Benchmarking Methodology
Comments due March 28

The Centers for Medicare & Medicaid Services (CMS) has issued the attached proposed rule updating the methodology used to measure the performance of accountable care organizations (ACOs) in the Medicare Shared Savings Program. CMS proposes to account for differences in regional health care spending when updating an ACO’s financial targets, rather than considering only an ACO’s historical financial performance. CMS also proposes to add an option to facilitate an ACO’s transition to performance-based risk arrangements by allowing eligible ACOs to elect a fourth year under their existing first agreement and defer by one year entering a second agreement period under a performance-based risk track. A fact sheet with more information is available on CMS’ website. Comments on the proposed rule are due March 28.

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