CMS: Medicare ACOs generate $380 million in savings

Officials from the federal Centers for Medicare and Medicaid Services said Thursday that accountable care organizations helped generate $380 million in savings in 2012 compared with the traditional Medicare program (Source:  “U.S. says results encouraging for healthcare delivery reforms,” Reuters, Jan. 30, 2014).

Close to half of the 114 ACOs established under the Affordable Care Act in 2012 slowed Medicare spending in their initial year, but just 29 met benchmarks to qualify for bonus payments. Experts said more work is needed to modernize the Medicare payment system, and a CMS official cautioned that it may take time to fully realize the benefits of the accountable care approach.