Proposed Rule Released to Measure Performance of ACOs

The Centers for Medicare and Medicaid Services (CMS) released a proposed rule that was published in the February 3, 2016 Federal Register, which updates the methodology used to measure the performance of Accountable Care Organizations (ACOs) in the Medicare Shared Savings Program.

Under the proposed rule, CMS would modify the process for resetting the benchmarks, which are used to determine ACO performance for those renewing their participation agreements. The proposed rule addresses changes to the Shared Savings Program that would modify the program’s benchmark rebasing methodology, to encourage ACOs’ continued investment in care coordination and quality improvement, and identifies publicly available data to support modeling and analysis of these proposed changes. In addition, it would streamline the methodology used to adjust an ACOs historical benchmark for changes in its ACO participant composition. Comments on the proposed rule are due by March 28, 2016.