The Next Generation Accountable Care Organization model reduced gross Medicare spending for calendar years 2016 to 2018 by $349 million (0.9%) without increasing preventable hospitalizations or readmissions, according to findings released last week by the Centers for Medicare & Medicaid Services. Lower spending on professional services, skilled nursing facilities and other post-acute care contributed to the spending reductions, which may reflect participants’ investment in SNF networks, improved coordination and care transitions and substitution for higher-cost settings, the agency said.

Participants in the model can choose varying levels of financial risk, and receive financial incentives and care management tools to improve health outcomes and lower spending for an assigned Medicare fee-for-service population.

Net Medicare spending for CYs 2016-2018 rose by $118 million (0.3%) after accounting for shared savings and other incentive payments. CMS recently extended the five-year model through 2021 due to the COVID-19 pandemic. For additional results from the first three performance years, see the full evaluation report.

Related News Articles

Headline
The AHA today participated in a panel discussion during a conference hosted by The Capitol Forum on the impact of insurer vertical integration. Molly Smith,…
Headline
The Department of Health and Human Services Office of Inspector General yesterday issued an alert warning of marketing schemes by certain Medicare Advantage…
Headline
An analysis by KFF released last week found that in 2022, Medicare spent 27% ($2,585) more, on average, for individuals covered by Traditional Medicare after…
Headline
A House Dear Colleague letter calling on House leadership to address scheduled Medicaid Disproportionate Share Hospital payment cuts received signatures from…
Headline
The AHA Dec. 9 said it supports a potential Medicare $2 Drug List Model, where people enrolled in a Part D plan would have access to certain prescription drugs…
Headline
In comments Dec. 9 to the Medicare Payment Advisory Commission, the AHA shared its views on physician fee schedule payments, advanced alternative payment model…