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(ACO) regulations - American Society of Anesthesiologists

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CMS-1345-P 307<br />

the <strong>ACO</strong>'s repayment mechanism would need to be periodically reassessed to ensure its<br />

adequacy.<br />

We propose that an <strong>ACO</strong> must demonstrate having established a repayment<br />

mechanism, using one or more <strong>of</strong> the recoupment methods proposed previously,<br />

sufficient to ensure repayment <strong>of</strong> losses equal to at least 1 percent <strong>of</strong> per capita<br />

expenditures for its assigned beneficiaries from the most recent year available. We<br />

further propose that we will determine the adequacy <strong>of</strong> an <strong>ACO</strong>'s repayment mechanism<br />

prior to its entrance into a period <strong>of</strong> participation in the Shared Savings Program. We<br />

also propose that an <strong>ACO</strong> must demonstrate the adequacy <strong>of</strong> this repayment mechanism<br />

annually, prior to the start <strong>of</strong> each performance year in which it takes risk, to ensure that<br />

it is adequate to cover the anticipated number <strong>of</strong> assigned Medicare beneficiaries. An<br />

<strong>ACO</strong> must maintain this repayment mechanism, ensuring adequate capitalization <strong>of</strong> funds<br />

in the case <strong>of</strong> some recoupment methods (such as adequately funded escrow accounts or<br />

reinsurance coverage), for the duration <strong>of</strong> the performance year and up until the time<br />

when we would need to be reimbursed for the <strong>ACO</strong>'s losses. We would ensure that an<br />

<strong>ACO</strong> maintains an adequate repayment mechanism through monitoring activities. We<br />

invite comments on this proposal and on the other options we have considered, as well as<br />

alternate suggestions for assuring risk-bearing <strong>ACO</strong>s have an appropriate amount <strong>of</strong><br />

available funds to repay potential losses.<br />

We further propose that an <strong>ACO</strong> would be required, as part <strong>of</strong> its application, to<br />

submit documentation <strong>of</strong> such a repayment mechanism for approval by us. This<br />

documentation would include details supporting the adequacy <strong>of</strong> the mechanism for<br />

repaying the <strong>ACO</strong>'s maximum potential downside risk exposure. An <strong>ACO</strong> applying for

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