CMS: More Than $1.6 Billion Saved by Medicare Shared Savings Program in 2021

The Centers for Medicare & Medicaid Services (CMS) shared that in 2021 the Medicare Shared Savings Program along with Accountable Care Organizations (ACOs)-groups of doctors, hospitals, and other health care providers-saved Medicare $1.66 billion compared to spending targets.

“This program has delivered more than $1.6 billion in savings and delivered high-quality health care to millions of people,” said US Department of Health and Human Services Secretary Xavier Becerra. “Just last month, we proposed ways to further grow and expand this successful program, especially in rural and underserved communities.”

The shared savings program has generated high-quality performance results and overall savings for its fifth consecutive year and over the past decade it has grown to be one of the largest value-based purchasing programs in the country.

The quality of care provided to people on Medicare as opposed to just the quantity of services is a focus of value-based purchasing programs. Over 525,000 participating clinicians who provide care to more than 11 million people with Medicare are included in the shared savings programs as of January 2022.

According to CMS, they have set a goal that 100% of people with traditional Medicare will be part of an accountable care relationship by 2030.

To continue to improve access to ACOs for more people with Medicare, CMS has proposed to incorporate advance payments to certain new ACOs in underserved and rural communities, which could be used to address social needs. CMS notes that this would be one of the first times Traditional Medicare payments would be permitted for such uses.

“We are encouraged and inspired by five consecutive years of savings and quality improvement,” said Meena Seshamani, MD, PhD, CMS Deputy Administrator and Director of the Center for Medicare. “Learnings from the Shared Savings Program can and should be applied across the industry, driving higher quality care systemwide. CMS looks forward to continually improving the program, expanding the reach of participating ACOs and addressing critical health disparities across the country.”

Reference:
The Centers for Medicare & Medicaid Services. Medicare Shared Savings Program Saves Medicare More Than $1.6 Billion in 2021 and Continues to Deliver High-quality Care. August 30, 2022. https://www.cms.gov/newsroom/press-releases/medicare-shared-savings-program-saves-medicare-more-16-billion-2021-and-continues-deliver-high