CBO: 7 Policy Approaches that Could Increase Savings for the Medicare Program Generated by ACOs

  1. Make ACO participation more attractive by increasing providers’ incentives.
  2. Make nonparticipation in ACOs less attractive (for instance
  3. by allowing payment for telehealth visits only for providers that choose to participate).
  4. Make ACO participation more attractive by providing capitation payments to primary care providers.
  5. Increase providers’ incentives to reduce spending by revising ACO benchmarks.
  6. Increase providers’ incentives to reduce spending by increasing shared savings rates.
  7. Increase beneficiaries’ awareness of the flexibilities available to ACOs.
  8. Expand the rewards and strengthen the incentives for beneficiaries to obtain services from ACOs’ providers.

Source: Medicare Accountable Care Organizations: Past Performance and Future Directions, Congressional Budget Office (CBO), April 2024 - https://www.cbo.gov/publication/60213

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