On May 21, 2021, the Centers for Medicare and Medicaid Services (“CMS”) announced that the Next Generation Accountable Care Organization (“ACO”) Model (“NGACO Model” or “Model”), set to.
Centers for Medicare and Medicaid Services CMS announced that the Next Generation Accountable Care Organization ACO Model NGACO Model or, set to end December 31, 2021, will not be extended after receiving a one-year extension due to COVID-19.
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A former senior Trump administration official lambasted the decision, calling it a big blow to value-based care. While some healthcare organizations forged ahead with the GPDC model despite the pandemic, others held off until they weathered the storm. CMMI had told interested organizations that they could join the model after the pandemic ended, so many of them decided to wait to apply.
Now many would-be participants are in limbo, as the agency decides the fate of the model or its possible replacement. The uncertainty has created widespread consternation among existing accountable care organizations and all new direct contracting entities backed by managed-care organizations or venture capital firms. Many of them would have applied for the pilot project last year if they knew CMMI would pause new applications for 2022, experts said.
Updated with list: Majority of Next Generation ACOs earned shared savings The National Association of ACOs is urging CMS to make program permanent.
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All but two of 39 accountable care organizations reporting outcomes in the Next Generation ACO model earned shared savings rather than owed money, a figure the National Association of ACOs touts as a success for value-based, capitated payments.
Next Generation is Medicare s model of greatest risk. NAACOS wants to see the four-year model made permanent.
Collectively, Next Gen ACOs saved Medicare $559 million last year, according to partial 2019 performance data made available by the Centers for Medicare and Medicaid Services.