Responsible Care Organizations (ACOs) save $2.4 billion in 2024 in the Medicare Shared Savings Plan, according to data released last week by Medicare and Medicaid Services (CMS).
A shared savings plan enables healthcare providers and organizations to form an ACO, which is responsible for the quality, cost and patient care experience of a group of Medicare premium beneficiaries.
CMS also reported that 75% of the 476 ACOs involved in 2024 were $4.1 billion in performance payments.
The agency noted that last year, “the highest share of ACOs that received performance payments and the highest share of ACOs and Medicare savings since the establishment of the Shared Savings Plan.” The program began in 2012.
Additionally, ACOS' per capita savings in 2024 are higher than those obtained in 2023: $241 vs. $241 per capita savings of $207 and $643 per capita savings of $515. Net savings per capita reflects the amount of Medicare savings alone, while the total savings per capita represent the total savings shared between ACOS and Medicare.
However, some ACOs have not achieved savings, with 16 debts owed in total equaling $20.3 million.
CMS also reported that ACO helps improve patient outcomes, including blood pressure and hemoglobin A1C levels. Among those reporting quality measures through the CMS web interface, the average percentage of beneficiaries of controlled hypertension rose from 77.8% in 2023 to 79.49% in 2023. In 2023, the average percentage of people with poor blood protein A1C control fell to 9.84% of 2024%.
Furthermore, most ACOs perform better in quality measures than comparable physician groups. For example, ACO performed much better than similar physician groups when screening for depression and creating follow-up plans: 53.5%, compared with 44.4%.
The National ACO Association appreciates the Medicare savings ACO.
“The results demonstrate continued success in improving high-quality, coordinated care for prevention, chronic diseases and root causes of disease,” Emily Brower, president and CEO of ACOS National ACOS Association, said in a statement.
“NAACOS and its members are pleased to work with CMS to build ACO’s success in keeping older people healthy by increasing the long-term sustainability of value-based care models,” Brower continued. “We can continue to support healthcare innovation and transformation by creating long-term financial stability, developing a job approach, reducing provider burden, and providing more Medicare with responsible healthcare services.”
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