ACO REACH Participants Generate Nearly $1 Billion in Savings for 2024
The Accountable Care Organization (ACO) Realizing Equity, Access, and Community Health (REACH) program has marked a significant milestone, achieving close to $1 billion in savings in 2024. According to the latest performance data released by the Centers for Medicare & Medicaid Services (CMS) under the Trump administration, this reflects a noteworthy advancement in accountable care.
Breaking Down the Numbers: Gross and Net Savings
CMS’s recent report outlines that the federal government’s net savings through the ACO REACH program amounted to $988.3 million. The gross savings, prior to adjustments for benchmark rebates and shared savings agreements, were reported at an impressive $2.5 billion. This substantial figure highlights the efficacy of the program’s financial strategies.
Furthermore, the report specifies that the combined net savings payments to the ACOs totaled $1.5 billion, equating to a shared savings rate of 4.2%. This achievement underscores the program’s ability to balance cost-efficiency with quality care delivery.
Participant Success and Quality Performance
Out of the 115 ACOs participating in the REACH program for 2024, a significant majority—96 organizations or 83%—successfully realized shared savings. Only 19 ACOs, or 17%, encountered a net loss, indicating robust overall performance across the board.
Additionally, CMS reported high quality performance among the participating ACOs. Notably, 49 organizations qualified for the high performance pool, which offers additional financial incentives. The high performance pool was introduced in the 2023 program year, further promoting excellence among participants.
Future Prospects: Transitioning to the LEAD Model
The ACO REACH model is slated to run until the end of 2026, marking it as the longest demonstration undertaken by CMS. As the program concludes, the Center for Medicare and Medicaid Innovation plans to transition to the Long-Term Enhanced ACO Design (LEAD) model, commencing January 1. This transition aims to build on the insights gained and expand capabilities for serving high-need populations.
Industry Reactions and Broader Impact
The National Association of ACOs (NAACOs) has applauded the participants, remarking that the results “demonstrate the success and impact of the model’s innovative design and focus on high-need populations.” The organization expressed optimism for the future, anticipating the expansion of these capabilities through the forthcoming LEAD model.
Additionally, the Accountable for Health group stated that the program “continues to demonstrate stronger financial performance year over year,” emphasizing its value to both Medicare beneficiaries and taxpayers. They noted that the 2024 results reinforce the effectiveness of accountable care, paving the way for the LEAD model’s enhancements.
In conjunction with its sister initiative, the Medicare Shared Savings Program, ACOs achieved an impressive $9 billion in savings in 2024, further illustrating their significant contribution to healthcare cost management.
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