Modern Healthcare October 22, 2019
A bipartisan pair of senators on Tuesday introduced a bill to fix the so-called “rural glitch” in the CMS’ reimbursement formula for accountable care organizations and potentially increase reimbursement rates for ACO providers under the Medicare Shared Savings Program.
The Rural ACO Improvement Act, sponsored by Sens. Catherine Cortez Masto (D-Nev.) and Pat Roberts (R-Kan.), aims to increase reimbursement rates for rural ACO providers by changing how the CMS calculates them. Currently, the agency compares the per-patient costs of a region’s ACO with the operating expenses of its non-ACO competitors.
But because rural ACOs are the only significant provider in their area, they often end up with a lower spending benchmark than ACOs in suburban and urban areas that have...