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CMS tweaks ACO REACH to stabilize model

CMS tweaks ACO REACH to stabilize model

August 15, 2023Rebecca PiferHealthcare DiveACO REACH

ACO REACH, which began its first model year in January, is a redesign of CMS’ controversial direct contracting model that’s meant to tie traditional payments in Medicare to value and improve care coordination. Regulators shelved the direct contracting program last year, after some progressives slammed the model as a thinly veiled effort to privatize the Medicare fee-for-service program.

The model, in which physicians can accept either full or partial capitation as payment, offers higher levels of risk and reward compared to other ACO models, while providing additional flexibilities.

Along with the new name, ACO REACH has a stronger focus on health equity and provider governance than its direct contracting predecessor.

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