Medicare ACOs saved billions last year

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63% of ACOs earned shared savings in the program

Data from CMS shows that the Medicare Shared Savings Program saved Medicare $4.3 billion in 2022, and $1.8 billion after accounting for shared savings and losses. This is the ninth consecutive year the program produced savings.

MSSP saves Medicare billions: ©Dimitry - stock.adobe.com

The MSSP cares for 10.4 million seniors, and of the 482 accountable care organizations (ACOs) in 2022, 84% achieved savings to Medicare with 63% earning shared savings.

In the last decade, ACOs have achieved more than $21 billion in gross savings for Medicare while improving care. More than 700,000 physicians and non-physicians participate in Medicare ACOs, caring for more than 13 million beneficiaries.

“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, in a statement. “ACOs continue to provide more of what patients want and deserve -- affordable, high-quality, coordinated, and personalized care.”

ACOs hold groups of doctors, hospitals, and other providers accountable for the cost and quality of care for a defined setof patients. If spending and quality metrics are met, they earn the right to share in the savings.

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, according to NAACOS.

Other key points from today’s ACO results:

$416 in gross savings per beneficiary
78% of shared savings-only ACOs produced gross savings with an average savings rate of 2.4%
88%of at-risk ACOS produced gross savings with an average savings rate of 4.7%
304 out of 482, or 63%, of ACOs earned shared savings
ACOs earned $2.5 billion in shared savings payments