Fierce Health Payers March 26, 2020
COVID-19 could raise Medicare spending by up to $115 billion and could wipe out shared savings for ACOs, a new analysis found.
The COVID-19 outbreak will potentially boost Medicare spending over the next year from $38.5 billion to $115.4 billion, a new analysis found.
The analysis released Wednesday by the National Association of Accountable Care Organizations also found that the increase in spending would lead to major losses for ACOs in models that take on financial risk. It also found a major burden on Medicare Advantage plans.
“We are just on the tip the iceberg of a global, public health pandemic that is out of ACOs’ control. We could see generated savings wiped out, massive penalties, and worst of...