July 17, 2024
Tea Leaves | Transition to Value
  • Providers participating in Medicare Shared Savings Program (MSSP) Accountable Care Organizations (ACOs) may receive advance payments based on their cost-saving achievements, alongside a looming 2.9 percent reduction in physician reimbursement rates set for 2025—a fifth consecutive year of decreases. This initiative, proposed by CMS, aims to assist high-performing ACOs, particularly safety-net institutions with limited financial resources, in enhancing clinical care and practice efficiencies. CMS acknowledges the challenge posed by declining Medicare pay and seeks to make participation in MSSP ACOs more attractive through these advance payments. The proposed rule also introduces a “prepaid shared savings” option within MSSP, emphasizing holistic patient care and operational enhancements to optimize health care delivery and cost containment. (Article here)