Accountable Care Organization

Medicare ACOs (Accountable Care Organizations) are comprised of groups of doctors, hospitals and other health care providers who come together to provide coordinated, high-quality care at lower costs to Medicare patients.  ACOs are patient-centered organizations where the patient and providers are partners in care decisions.  This allows Medicare patients to have better control over their healthcare and providers to have better information about patients’ medical history and better relationships with the patients’ other providers.  Medicare patients will see no change in Medicare benefits and keep their freedom to see any Medicare provider.   

The Next Generation ACO Model is for ACOs that are experienced in coordinating care for populations of patients.  The goal is to test whether strong financial incentives for ACOs, coupled with tools to support better patient engagement and care management, can improve health outcomes and lower expenses for Medicare fee-for-service patients. 

The Next Generation ACO Model ensures that patients have access to and receive high-quality care.  This Model will be evaluated on its ability to deliver better care for individuals, better health for populations at a lower cost.  This is in accordance with the Department of Health and Human Services’ “Better, Smarter, Healthier” approach to improving our nation’s health care and setting clear, measureable goals.  CMS will publicly report the performance of the Next Generation ACOs on its website.