Also, “MSSP ACOs have produced $1.6 billion in program savings compared to benchmark projections over the life of the program, increasing the savings each year. Avalere experts note that despite the MSSP increasing federal spending, ACOs are still reducing spending compared to projected benchmarks.”
In other words, CBO made a guess in 2010 that ACOs would massively reduce Medicare spending compared to historical spending, starting immediately. It was wrong. Now, CMS seems to be making policy based on that guess rather than either the most recent facts or a comparison of ACO performance to what expenditures would be without them.
Wait, CMS Actually Saved $541 Million!!
NAACOS said in September that the methods used by CMS internally are flawed. A study the organization commissioned concluded that ACOs saved $541.7 million in the years 2013 – 2015, while CMS’ internal calculations say ACOs lost Medicare $344.2 million. NAACOS says the methods used by its study are the “gold standard” in how to measure savings.
If you’re interested in the details, the 957-page final rule can be read here.

