The Centers for Medicare and Medicaid Services (CMS) found that Accountable Care Organizations (ACOs) and the Medicare Shared Savings Program (MSSP) saved Medicare $2.1 billion in 2023 – the largest annual savings in program history and the seventh consecutive year of savings generated by the program. CMS also noted that MSSP ACOs are “providing higher-quality care and supporting policies CMS has adopted to enhance primary care, expand access to accountable care to underserved communities, and prioritize quality care for common chronic conditions.”
CMS also found that from performance year (PY) 2022 to PY 2023, ACOs’ performance improved on quality measures that they are required to report to share in savings, including statistically significant improvement on quality measures related to diabetes and blood pressure control, breast cancer and colorectal cancer screening, screening for future fall risk, statin therapy for prevention and treatment of cardiovascular disease, and depression screening and follow-up. CMS believes that these improvements in quality performance “underscore how this type of coordinated, whole-person care can improve treatment of common conditions, including behavioral health and cancer.”
CMS further noted that MSSP is one of the largest value-based payment programs in the country, with 480 MSSP ACOs covering more than 608,000 clinicians providing care to nearly 11 million Medicare beneficiaries as of January 2024. CMS has now set a goal that 100% of Traditional Medicare beneficiaries be part of an ACO relationship by 2030, based on the program’s success and opportunities to continually improve value for Medicare beneficiaries and the health care system.
Additionally, based on the success of ACOs, CMS will continue to explore testing models and adding new features to support MSSP ACOs in increasing their investment in primary care services. CMS is also focusing on supporting ACOs by helping them to report digital quality measures, including a proposal in the Calendar Year 2025 Medicare Physician Fee Schedule Proposed Rule to establish an adjustment to an ACO’s quality score to account for the challenges complex organizations face as they transition to digital measures.
“Last year, ACO participants reduced Medicare spending by an average of 4% for nearly 11 million beneficiaries, resulting in Medicare’s largest savings to date—an impressive $5.2 billion, with $2.1 billion retained by Medicare and $3.1 billion distributed as shared savings,” said the National Association of ACOs’ in a statement.
“Accountable Care Organizations in the Medicare Shared Savings Program continue to deliver high-quality health care for people with Medicare and meaningful savings for the Medicare program,” said CMS Administrator Chiquita Brooks-LaSure. “CMS continues to improve the Medicare Shared Savings Program for the future so that providers in Accountable Care Organizations are able to deliver coordinated, high-quality, affordable, equitable, person-centered care to people with Medicare.”
“We continue to be encouraged and inspired by seven consecutive years of savings and high-quality care, with 2023 being the strongest year of performance to date,” said Meena Seshamani, MD, PhD, CMS Deputy Administrator and Director of the Center for Medicare. “We are taking steps to continue to grow this impactful program to ensure those we serve have access to high-quality, affordable health care, no matter where they live.”
For the 2023 Medicare Shared Savings Program Financial and Quality performance results, click here.