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(ACO) regulations - American Society of Anesthesiologists

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CMS-1345-P 232<br />

losses to enter a sharing arrangement that provides greater reward for greater<br />

responsibility.<br />

Based on the input <strong>of</strong> commenters on the November 17, 2010 RFI, other<br />

stakeholders and policy experts we are proposing to implement a hybrid approach.<br />

Specifically, we are proposing that <strong>ACO</strong>s participating in the Shared Savings Program<br />

will have an option between two tracks:<br />

Track 1: Under Track 1, shared savings would be reconciled annually for the first<br />

2 years <strong>of</strong> the 3-year agreement using a one-sided shared savings approach, with <strong>ACO</strong>s<br />

not being responsible for any portion <strong>of</strong> the losses above the expenditure target.<br />

However, for the third year <strong>of</strong> the 3-year agreement, we will use our authority under<br />

section 1899(i) <strong>of</strong> the Act to establish an alternative two-sided payment model. Under<br />

this model, an <strong>ACO</strong> would be required to agree to share any losses that may be generated<br />

as well as savings. The portion <strong>of</strong> shared losses that the <strong>ACO</strong> would be at risk for in the<br />

third year <strong>of</strong> the agreement is further described in section II.G. <strong>of</strong> this proposed rule.<br />

<strong>ACO</strong>s that enter the Shared Savings Program under Track 1 would be automatically<br />

transitioned to the two-sided model in the third year <strong>of</strong> their agreement period. In that<br />

year, the <strong>ACO</strong>'s payments would be reconciled as if it was in the first year <strong>of</strong> the<br />

two-sided model. However quality scoring would still be based on the methods for the<br />

third year (that is, it would not revert back to the first year standard <strong>of</strong> full and accurate<br />

reporting). Thereafter, those <strong>ACO</strong>s that wish to continue participating in the Shared<br />

Savings Program would only have the option <strong>of</strong> participating in Track 2, that is, under the<br />

two-sided model.

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