Main Library
Dive Insight:
In 2023, ACO REACH replaced the previous direct contracting arrangement, wherein accountable care organizations take on risk to care for seniors in traditional Medicare. Despite tweaks by the CMS over ACO REACH’s tenure — most recently, regulators modified how benchmarks and risk scores are measured — participation has been underwhelming, with many providers electing not to participate or dropping out due to financial and administrative barriers.
Still, 103 accountable care organizations covering almost 162,000 healthcare providers signed onto ACO REACH for 2025. The model’s expiration at the end of next year created a vacuum for those providers — and the 2.5 million people on traditional Medicare for whom they provided care.
The CMS has now filled that vacuum with ACO LEAD. The agency’s announcement about the new model didn’t share many specifics, but the release points to certain core similarities with ACO REACH.