Statement Regarding Next Generation ACO Performance Year 4 Data

Statement by Jeff Micklos, JD, Executive Director, Health Care Transformation Task Force

New data released by the Centers for Medicare & Medicaid Services shows more evidence that Next Generation Accountable Care Organizations (ACOs) have reduced direct Medicare spending. Thirty-seven participants in the Next Generation ACO program saved a total of $559 million and achieved an average quality score of 93.7 percent in 2019, according to data recently released on Performance Year 4.

Current Next Generation ACOs have proven that this model saves money and improves the quality of care for patients. The Health Care Transformation Task Force believes that models that have been tested and proven to reduce costs and improve quality should be expanded under existing legal authority. The most recent results give further grounds for Medicare’s Next Gen ACO program to be made into a permanent alternative payment model option for Medicare providers. We urge the incoming Biden Harris Administration to continue testing this model with an eye toward making it permanent.