The Next Generation ACO Model

This is a new initiative from The Centers for Medicare & Medicaid Services (CMS) which takes the top Pioneer ACO companies and builds a model of best practices under the Shared Savings Program. This new model sets a benchmark, where beneficiaries can align themselves to the ACO and evaluates the beneficiary incentives of seeking this type of next Generation providers.

ACO Participants in this model will take on higher level or financial risk, than the older model ACOs, however they will have the opportunity to share in higher savings that can be obtained with better care coordination and care. In addition, these ACOs will be able to receive their budgets ahead of time, which will help them better manage and plan the care in order to reach financial targets.

In addition, they will have the option of selecting payment options, which will allow flexibility, such as infrastructure payments that support ACO’s investment in the care of their patients.

So what does this mean to ACOs, providers, and beneficiaries? Potentially, better healthcare for all.