CMMI announces Pioneer ACO model
The Centers for Medicare & Medicaid Services recently released a Request for Applications for the Pioneer Accountable Care Organization Model for health care organizations and providers that are already experienced in coordinating care for patients across care settings.
The Pioneer ACO Model will allow these provider groups to move more rapidly from a shared-savings payment model to a population-based payment model on a track consistent with, but separate from, the proposed Medicare Shared Savings Program.
It is also designed to work in coordination with private payers by aligning provider incentives, which will improve quality and health outcomes for patients across the ACO, and achieve cost savings for Medicare, employers and patients.
The payment models being tested in the first two years of the Pioneer ACO Model are a shared-savings payment policy with generally higher levels of shared savings and risk for Pioneer ACOs than levels currently proposed in the Medicare Shared Savings Program.
In year three of the program, participating Pioneer ACOs that have shown a specified level of savings over the first two years will be eligible to move a substantial portion of their payments to a population-based model, such as a per-beneficiary-per-month payment based on projections.