Next Generation ACO model saves Medicare $667M before incentive payments

The Next Generation Accountable Care Organization model reduced gross Medicare spending in performance years 2016 to 2019 by $667 million (1.2%), according to findings released last week by the Centers for Medicare & Medicaid Services. Net Medicare spending for PYs 2016-2019 rose by 0.4% after accounting for shared savings and other incentive payments.

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. CMS last year extended the five-year model through 2021 due to the COVID-19 pandemic. For additional results from the first four performance years, see the full evaluation report.