ACOs: Heads Up: CMS Is Changing the Way Medicare Pays ACOs Under The MSSP

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Note:  The following article synopsis was NOT provided by AAPC. It was created by Find-A-Code/innoviHealth.

Article Overview

This article explains a CMS final rule affecting Accountable Care Organizations participating in the Medicare Shared Savings Program. It focuses on how Medicare payment methodology is changing, why the update matters for ACO performance measurement, and what the revised framework means for organizations preparing for future program tracks. The piece is aimed at physicians, ACO participants, and others tracking Medicare payment policy and value-based care programs.

Why This Topic Matters

The rule affects how ACO performance is measured and compared, which can influence participation strategy, financial exposure, and readiness for broader Medicare payment reforms. It is relevant to organizations trying to understand evolving CMS policy and the shift toward regional and quality-based evaluation.

Article Sections

  1. Background and CMS policy update

    Introduces the CMS final rule and places it in the context of ACO participation in Medicare payment reform. Summarizes the broader policy direction and the organizations involved.

  2. Expect the bar to get lower

    Describes changes to performance measurement and benchmark setting for ACOs after the initial agreement period. Covers the role of historical and regional data in the updated methodology.

  3. Prepare to compete on a county level

    Explains the move toward region-based comparisons and the related implications for how performance is assessed across different areas. Also notes the revised participation timeline for organizations entering risk-based tracks.

  4. Watch for more specifics on service areas

    Summarizes CMS’s plans for defining regional service areas and sharing supporting county-level information. Includes references to where readers can find the rule and related public materials.

What You Will Learn

  • How CMS is revising Medicare payment evaluation for ACOs in the MSSP
  • Why benchmark methodology is changing for participating ACOs
  • What regional comparison concepts are being introduced
  • How the updated policy may affect participation timing and program tracks
  • Where CMS plans to provide additional public data and guidance

Who Should Read This

  • Physicians
  • Accountable Care Organization administrators
  • Medical practice managers
  • Healthcare compliance staff
  • Medicare policy analysts
  • Value-based care stakeholders

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