Since Accountable Care Organizations (ACOs) are CMS’s largest pay for performance model delivering care to over 7.5 million beneficiaries, each August Medicare policy analysts await CMS’s press release summarizing ACO financial and quality performance for the previous year. This past August 25, CMS announced 2015 results. Like performance year one (2013) and two (2014), performance year three again produced marginal results. Largely because, inexplicably, CMS is not evaluating the ACO program, once again analysts are left to decipher what performance results mean for the program, how success was achieved and what ACO performance means in context of the agency’s overall efforts at lowering Medicare spending growth.
Summary of 2015 Performance Results
In CMS’s August 25th press releases, the agency noted 120 out of 392 2015 ACOs earned share savings. 1 CMS also releases annually a data file summarizing ACO participants, participation track, number of assigned beneficiaries, financial benchmark and quality measurement data. Based on the data file, of 392 ACOs, 115 ACOs earned shared savings, 114 in Track 1 and one in Track 2, or 29% of all ACOs. 2 This compares to 26% in 2014. 3 Of the remaining 276 ACOs, one ACO earned shared savings but did not meet their quality performance standard, 86 ACOs produced savings but did not exceed their Minimum Loss Ratio (MLR) and 95 received reimbursements beyond their benchmark and fell within their negative MLR. The worst performing ACOs were the 95, or 24%, that received reimbursements that exceeded their negative MLR. Had this last group not been in Track 1 they would have owed CMS half of their above benchmark reimbursements. As in 2014 earned shared savings was highly concentrated. Ten of the 115 successful ACOs earned $220 million in shared savings, or more than one-third of total $645 million in shared savings payments.
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