Seema Verma’s Big Picture: Tough Love, ACO Acceleration, Interoperability, and Consumer Empowerment? | Mark HaglandAugust 29, 2018
Though not entirely unexpected, the announcement last Thursday evening (August 9) by Administrator Seema Verma and her fellow senior officials at the federal Centers for Medicare and Medicaid Services (CMS) nonetheless created quite a stir within patient care leaders in U.S. healthcare. As Managing Editor Rajiv Leventhal reported that evening, “The Centers for Medicare & Medicaid Services (CMS) is proposing a new direction for ACOs (accountable care organizations) in the Medicare Shared Savings Program (MSSP), with the goal to push these organizations into two-sided risk models.”
Leventhal went on to note that this new proposal, named “Pathways to Success,” which had been anticipated for months, “looks to redesign the program’s participation options by removing the traditional three tracks in the MSSP model and replacing them with two tracks that eligible ACOs would enter into for an agreement period of no less than five years: the BASIC track, which would allow eligible ACOs to begin under a one-sided model and incrementally phase-in higher levels of risk; and the ENHANCED track, which is based on the program’s existing Track 3, providing additional tools and flexibility for ACOs that take on the highest level of risk and potential rewards. At the highest level, BASIC ACOs would qualify as an Advanced Alternative Payment Model (APM) under the Quality Payment Program.”
Right now, Leventhal pointed out, “[T]he MSSP model includes three tracks and is structured to allow ACOs to gain experience with the program before transitioning to performance-based risk. The vast majority of Shared Savings Program ACOs have chosen to enter and maximize the allowed time under Track 1, which is an “upside-only” risk model. MSSP Tracks 2 and 3 involve downside risk, but participation in these tracks has been limited thus far.” And that is in this context: “Broadly, CMS is now essentially proposing that the contract agreements of upside-only ACOs be two years, rather than allowing six years (two, three-year agreements) like the government has previously permitted. Overall, there are 561 MSSP ACOs out of 649 total Medicare ACOs, with 82 percent of those 561 MSSP ACOs taking on upside risk only.”
In other words, Verma and her fellow CMS officials are banking on the proposition that they can compel/force hospital, medical group, and health system leaders to move quite quickly from upside risk to upside/downside risk, and not simply drop out of the MSSP program.
So, just how risky (pardon the embedded pun) is that gamble on the part of Verma and CMS? Well, the proposal has elicited quite a range of responses from the industry in the past few days. But, as Leventhal reported on Friday, one very major player in this landscape, NAACOS—the Washington, D.C.-based National Association of ACOs—is pretty much hopping mad, calling the proposal “misguided,” and noting that the changes, if finalized, “will upend the ACO movement by…