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(ACO) regulations - American Society of Anesthesiologists

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CMS-1345-P 269<br />

and share in savings with little or no actual improvement in the quality and efficiency <strong>of</strong><br />

care provided to beneficiaries.<br />

The proposed confidence intervals were determined assuming that the variation in<br />

the per capita expenditure growth for a particular <strong>ACO</strong> is equal to the variation in per<br />

capita expenditure growth nationally. This is not the case for the majority <strong>of</strong> <strong>ACO</strong>s,<br />

however, as regional growth rates tend to vary from the national average due to a number<br />

<strong>of</strong> variables. Therefore, the confidence intervals generated using only the national<br />

expenditure growth variation overstate the relative confidence associated with an<br />

increasing group size. This is compensated for in two ways: (1) the 2 percent floor; and<br />

(2) increasing the confidence interval as group size increases.<br />

Table 6. Minimum Savings Rate and Confidence Intervals by Number <strong>of</strong> Assigned<br />

Beneficiaries (One-Sided Model)<br />

Number Beneficiaries<br />

MSR (low end <strong>of</strong><br />

assigned beneficiaries)<br />

MSR (high end <strong>of</strong><br />

assigned beneficiaries)<br />

5,000 - 5,999 3.9% 3.6%<br />

6,000 - 6,999 3.6% 3.4%<br />

7,000 - 7,999 3.4% 3.2%<br />

8,000 - 8,999 3.2% 3.1%<br />

9,000 - 9,999 3.1% 3.0%<br />

10,000 - 14,999 3.0% 2.7%<br />

15,000 - 19,999 2.7% 2.5%<br />

20,000 – 49,999 2.5% 2.2%<br />

50,000 – 59,999 2.2% 2.0%<br />

60,000 + 2.0%<br />

We welcome comments on the most appropriate means to establish the MSR for an <strong>ACO</strong>,<br />

including the appropriate confidence intervals.<br />

11. Net Sharing Rate

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