HHS Announces Formation of 106 New Accountable Care Organizations

The ACA introduced the Accountable Care Organization as a way to cut down on Medicare spending. This plan may be picking up steam. On January 10, HHS announced that 106 new providers would become ACOs. As a result, there are now more than 250 ACOs nationwide. The trend toward ACOs is starting to take hold in the Midwest as well. Several ACOs are now active in Nebraska and nearby states. This latest group of ACOs includes two more serving Nebraska and Iowa. The next round of ACO enrollments is likely to bring more Nebraskan ACOs.

The ACO rules provide for regular Medicare payments like those offered to other providers. ACOs can also receive extra payments if their performance meets special quality standards. However, they face the risk of having to pay additional money to HHS if they fail to meet those standards. Thus, providers should analyze whether to apply for the program with an advisor.

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