CMS Finalizes Changes To Medicare Shared Savings Program/ACO Benchmark Rebasing Rules

CMS has published a final rule that revises the methodology CMS uses to measure the performance of accountable care organizations (ACOs) in the Medicare Shared Savings Program. According to CMS, the changes are intended to encourage participation in the MSSP, under which more than 430 ACOs in 49 states and the District of Columbia currently serve more than 7.7 million Medicare beneficiaries.

Notably, the rule will phase in the use of regional fee-for-service (FFS) expenditures in the methodology CMS uses to rebase and update performance benchmarks for ACOs that continue participation in the Shared Savings Program after an initial three-year agreement period. According to CMS, "this approach will improve the program's incentives for ACOs by recognizing an ACO's efficiency relative to its region and limiting the link between an ACO's performance and its future benchmarks." In addition, the rule adds an alternative participation option to encourage ACOs to enter