Medicare Shared Savings Program ACOs Boasted Over $1.8B Savings in 2022
The Medicare Shared Savings Program continues to deliver high-quality care even with reduced costs
By: Catie Hillard
Aug 30, 2023 – The Medicare Shared Savings Program (MSSP) has once again made headlines, reporting a staggering $1.8 billion savings in 2022. What’s more, is that 63% of accountable care organizations (ACOs) under the MSSP were awarded payments based on their top-tier performance.
MSSP’s 2022 results continue its impressive streak, marking the sixth year in a row the program has demonstrated both savings and quality performance metrics. The substantial $1.8 billion savings, a close second to the program’s highest-ever savings, underscores the initiative’s success since its launch in 2012.
What is the Shared Savings Program?
Shared Savings Program Accountable Care Organizations (ACOs) are groups of doctors, hospitals, and other health care providers that collaborate to provide coordinated care to people with Medicare. They focus on delivering high-quality care that is the right care at the right time. This helps ACOs avoid unnecessary services and medical errors that are costly to payers and consumers alike.
The Shared Savings Program has grown into one of the largest value-based payment (VBP) programs in the United States. To put things into perspective, as of the start of 2023, the MSSP had over half a million clinicians dedicated to the care of almost 11 million Medicare beneficiaries. Looking back, 2021 saw the program accruing savings amounting to $1.66 billion, with a notable 58% of ACOs reaping performance-based rewards.
“The Medicare Shared Savings Program helps millions of people with Medicare experience coordinated health care while also reducing costs for the Medicare program,” CMS Administrator Chiquita Brooks-LaSure stated in the press release. “CMS will continue to improve the program, and it is exciting to see that accountable care organizations are continuing to be successful in delivering coordinated, high-quality, affordable, equitable, person-centered care.”
HHS Secretary Xavier Becerra added, “This program has delivered more than $1.8 billion in savings and delivered high-quality health care to millions of people. Just last month, we proposed ways to further grow and expand this successful program, especially in rural and other underserved communities. The Biden-Harris Administration will continue to do everything we can to strengthen Medicare and ensure everyone can access high-quality, affordable health care.”
What’s Ahead for the Medicare Shared Savings Program?
The 2024 Physician Fee Schedule is expected to carry alterations in the MSSP. The objective is to bolster participation levels among healthcare practitioners and intensify the focus on health equity. This is especially important in rural and traditionally underserved regions.
Key among the proposed changes is the desire to integrate more individuals under the care of nurse practitioners, physician assistants, and clinical nurse specialists in ACOs. CMS is also contemplating a shift in the benchmark strategy to further entice ACOs that predominantly cater to beneficiaries with intricate and higher-cost health challenges.
CMS has set a goal that 100 percent of people with Traditional Medicare will be part of an accountable care relationship by 2030. So far, the MSSP has shown promising results year after year and we hope they continue as the program progresses.
To view the entire CMS press release, click here.
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