The Centers for Medicare & Medicaid Services late today issued a proposed rule that would redesign the Medicare Shared Savings Program’s participation options by offering eligible accountable care organizations two tracks, which they would agree to participate in for at least five years.

Specifically, a BASIC track would allow eligible ACOs to participate under a one-sided, upside-only agreement for one to two years and then incrementally phase in higher levels of risk. At the highest level of risk, the BASIC track would qualify as an Advanced Alternative Payment Model under the Quality Payment Program. CMS also would offer an ENHANCED track based on the program’s existing Track 3. The changes would apply for agreement periods beginning on July 1, 2019 and in subsequent years. The current Track 1, Track 1+ and Track 2 would be discontinued for future applications. The methodology for determining quality performance would remain mostly consistent with the existing MSSP program, but CMS solicits input on ways to enhance the program’s measure set, including how to address opioid use. CMS also proposes to require ACOs to attest that a certain percentage of clinicians are using certified electronic health record technology.

“The proposed rule fails to account for the fact that building a successful ACO, let alone one that is able to take on financial risk, is no small task; it requires significant investments of time, effort and finances,” said AHA Executive Vice President Tom Nickels in a statement. “Hospitals and health systems must build upon their current infrastructure, which entails forming new and different contractual relationships and incentivizes successful strategies. While some have already taken significant steps toward achieving such alignment, others are not as far down this path. A more gradual pathway is critical for hospitals and health systems that are interested in participating in risk-bearing models – particularly those that are exploring such models for the first time.”

Nickels also said that for hospitals and health systems, and other providers that “want to come together to provide the highest quality care for patients, the proposed rule would create barriers to entry in transitioning to value-based care. We will urge CMS to ensure that it strikes a balance between quality care for Medicare beneficiaries; savings for the Medicare program; and sufficient opportunity for ACOs to invest in the infrastructure necessary to successfully take on risk.”

Comments on the rule are due Oct. 16.

Related News Articles

News
The Centers for Medicare & Medicaid Services April 7 released finalized payment rates for calendar year 2026 Medicare Advantage and Part D plans. Payments…
Headline
The AHA today urged the Medicare Payment Advisory Commission to take specific actions on physician fee schedule payments following recommendations the…
Headline
The Centers for Medicare & Medicaid Services April 4 finalized changes to the Medicare Advantage and prescription drug programs for contract year 2026. The…
Chairperson's File
Public
Rural hospitals and health systems face big challenges, but together — with a unified voice — we can work to ensure people living in rural communities get the…
Headline
The Department of Health and Human Services March 27 announced a series of actions as part of a department-wide restructuring. The department said the moves…
Headline
The Senate Finance Committee March 14 held a confirmation hearing on Mehmet Oz's nomination for administrator of the Centers for Medicare & Medicaid…