Corporate Compliance

Medicare shared savings program: ACO final rule

Compliance Monitor, November 9, 2011

HHS and CMS published their final rule on the Federal Register for accountable care organizations (ACO) and shared savings program on November 2.

The final rule provides that, in addition to continuing to receive traditional Medicare fee-for-service payments under Parts A and B, providers and suppliers will be eligible for additional payments if they meet specified quality and savings requirements. Specifically, the Medicare program can share a percentage of achieved savings with ACOs that meet predetermined quality and savings requirements. The rule aims to accomplish the following goals:

  • Better care for individuals
  • Better health for populations
  • Lower growth in expenditures

Modifications intended to reduce cost and burden for participating ACOs include establishing longer agreement periods for those beginning in 2012, greater flexibility in ACO governance and legal structure, and increased sharing caps.

Access the final rule on the Federal Register website.

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