News Release
August 24, 2023
Medicare ACOs Saved $4.2 Billion in 2022
Shared Savings ACOs Continue to Deliver Savings, Improve Health
WASHINGTON — Medicare’s largest alternative payment model produced savings for the ninth straight year, while continuing to provide high-quality care, as shown by performance data released today by the Centers for Medicare & Medicaid Services (CMS).
While caring for 10.4 million seniors in 2022, the Medicare Shared Savings Program saved Medicare $4.3 billion, and $1.8 billion after accounting for shared savings and losses. Of the 482 accountable care organizations (ACOs) in 2022, 84 percent achieved savings to Medicare with 63 percent earning shared savings.
ACOs have generated more than $21 billion in gross savings for Medicare over the last decade and improved the quality of care for millions of patients. More than 700,000 physicians and other non-physicians participate in Medicare ACOs, caring for more than 13 million beneficiaries today, making it far and away the largest alternative payment model in Medicare.
“Every year, the body of data on how ACOs are improving our fragmented health system grows, and this year is no different,” said Clif Gaus, Sc.D., president and CEO of the National Association of ACOs (NAACOS). “ACOs continue to provide more of what patients want and deserve — affordable, high-quality, coordinated, and personalized care.”
ACOs and broader value-based care efforts incentivize clinicians to deliver high-quality care while lowering costs to patients and the Medicare program. This includes providing the right care, at the right time, and in the right setting. ACOs hold groups of doctors, hospitals, and other providers accountable for the cost and quality of care for a defined set of patients. They earn the right to share with Medicare savings generated if certain spending and quality metrics are met. Results for all 2022 Shared Savings Program ACOs, which compare the year’s spending to pre-set targets, are available in an online public use data file.
Today’s data demonstrates how Congress must continue to encourage participation in ACOs and other value-based care models by extending incentive payments for risk-bearing ACOs. NAACOS supports the Value in Health Care Act (H.R. 5013), which would extend incentives that expire at the end of the year. The $4.3 billion in savings achieved in 2022 far exceeds the estimated $644 million paid in incentives this year. These incentives have been critical in helping clinicians cover the investment costs of moving to new payment models.
Other key points from today’s ACO results:
- $416 in gross savings per beneficiary
- 78 percent of shared savings-only ACOs produced gross savings with an average savings rate of 2.4 percent
- 88 percent of at-risk ACOS produced gross savings with an average savings rate of 4.7 percent
- 304 out of 482, or 63 percent, of ACOs earned shared savings
- ACOs earned $2.5 billion in shared savings payments
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Contact:
David Pittman
Director, Communications and Regulatory Affairs
202-640-2689 or dpittman@naacos.com
