Policy & Medicine June 23, 2024
The Congressional Budget Office (CBO) recently released a report, “Medicare Accountable Care Organizations: Past Performance and Future Directions.” This report summarizes findings about Medicare accountable care organizations (ACOs) and the facts that contribute to – or limit – their ability to achieve net budgetary savings for the Medicare program.
According to the report, certain types of ACOs result in greater savings, particularly those led by independent physician groups, those with a larger proportion of primary care providers (PCPs), and those whose initial baseline spending was higher than the regional average. The report also found that some factors limit the savings from Medicare ACOs, including weak incentives for ACOs to reduce spending, a lack of resources necessary for providers to participate...