CMS creating the “Next Generation ACO” model based on risk and reward

A new ACO model, called the “Next Generation ACO,” will allow participants to assume greater financial risk for greater rewards, according to AAFP.

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The new model “sets more predictable financial targets than are available under the Pioneer Model and the Medicare Shared Savings Program,” said AAFP.

The main goal of the model is to see whether incentives, improved support for patients and care management can improve health and decrease costs, by reducing the amount patients may pay for services in fee-for-service programs.

CMS currently expects 15 to 20 ACOs to participate in this program and will accept applications for the program in two periods 2015 and 2016.

 

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