Medicare ‘Next Generation’ Accountable Care Organization Model Features Greater Savings Sharing, But Greater Risk

In March 2015, the Centers for Medicaid & Medicare Services (CMS) released a request for applications for the Medicare Next Generation accountable care organization (ACO) model. The Next Generation ACO model offers two risk-sharing arrangements: increased shared risk and full performance risk. In the increased shared risk model, ACOs will be responsible for 80% of the risk of Medicare Part A and B payments in the first three years and in the fourth and fifth year become responsible for 85% of the risk. Under the full performance risk arrangement, ACOs will be responsible for 100% of Medicare Part A . . .