October 30, 2024  – The Centers for Medicare & Medicaid Services (CMS) has announced that the Medicare Shared Savings Program (MSSP) saved over $2.1 billion in 2023. This is the largest annual savings since the program began. This year also saw Accountable Care Organizations (ACOs) under the MSSP improve the quality of care provided to beneficiaries, according to a recent CMS press release.

Overview of 2023 Performance

The MSSP, which involves ACOs—groups of doctors, hospitals, and other healthcare providers working together to provide high-quality service to Medicare beneficiaries—reported not only unprecedented savings but also shared savings payments to ACOs amounting to $3.1 billion in 2023. This is the highest ever paid in the MSSP’s 10 years of existence. In addition to that, findings show that ACOs have scored better on many quality measures than other types of physician groups.

CMS Administrator Chiquita Brooks-LaSure touted the results, saying, “Accountable Care Organizations in the Medicare Shared Savings Program continue to deliver high-quality health care for people with Medicare and meaningful savings for the Medicare program. CMS continues to improve the Medicare Shared Savings Program for the future so that providers in Accountable Care Organizations are able to deliver coordinated, high-quality, affordable, equitable, person-centered care to people with Medicare.”

As of January 2024, the program has expanded to include 480 ACOs with over 600,000 clinicians that collectively care for nearly 11 million beneficiaries. This growth is part of CMS’s broader goal to ensure that all traditional Medicare beneficiaries are covered under an accountable care arrangement by 2030.

Focus on Primary Care and Quality

ACOs with a strong primary care base achieved higher savings, demonstrating the value of primary care in managing patient health effectively. CMS emphasizes this as a core part of their strategy to enhance the efficiency of healthcare delivery through the MSSP.

ACOs also showed improvement in key areas of healthcare quality from the previous year, including management of diabetes and blood pressure, and screening for cancers and cardiovascular diseases. These improvements are in line with CMS’s goals to improve overall healthcare outcomes under its Behavioral Health Strategy and Cancer Moonshot initiative.

Regulatory Support and Future Directions

The continued success of the MSSP hinges on legislative and regulatory support to maintain the flexibilities introduced during the COVID-19 pandemic. These measures have allowed for more adaptable and responsive healthcare practices, which have been crucial in achieving recent successes.

The 2023 results represent a significant milestone for the MSSP, reflecting ongoing efforts to refine and enhance the delivery of healthcare that is both cost-effective and high in quality.

For more detailed information on the performance and future plans of the Medicare Shared Savings Program, stakeholders are encouraged to visit the CMS website or consult the Federal Register for official documents and further announcements.