Pioneer ACO Model Generates Medicare Savings, Independent Report Reveals

The US Department of Health and Human Services released an independent evaluation report showing an innovative payment model created as a pilot project by the Affordable Care Act generated substantial savings to Medicare in just two years. Additionally, the independent Office of the Actuary in the Centers for Medicare & Medicaid Services (CMS) has certified that this patient care model is the first to meet the stringent criteria for expansion to a larger population of Medicare beneficiaries.

The Pioneer Accountable Care Organization (ACO) Model was found to generate over $384 million in savings to Medicare over its first two years, according to the independent evaluation report. This equates to an average savings of approximately $300 per participating beneficiary per year, while continuing to deliver high-quality patient care. Pioneer ACOs generated Medicare savings of $279.7 million in 2012 and $104.5 million in 2013. To date, actuarial analyses show that ACOs in the Pioneer ACO Model and the Medicare Shared Savings Program have generated over $417 million in total program savings for Medicare. The primary analyses in the evaluation are also reported in an article published in the Journal of the American Medical Association (JAMA).

Additional information about the Pioneer ACO Model and its actuarial certification can be found on the Pioneer ACO Model web page.