Medicare Pioneer ACO Program Results In Reduced Spending; Largest Drop In Inpatient Spending

Between 2012 and 2013, the Medicare Pioneer accountable care organization (ACO) program reduced Medicare expected expenditures by $385 million by slowing cost growth, particularly for inpatient hospital services. There were nearly 1.5 million beneficiaries aligned with a Pioneer ACO between 2012 and 2013. Compared to average per beneficiary per month (PBPM) spending for other fee-for-service (FFS) Medicare beneficiaries not aligned with a Pioneer ACO, total PBPM for those who were aligned was about $35 less in 2012 and $11 less in 2013.

Inpatient spending showed the largest differential change of any spending category. The ACO-aligned PBPM . . .