Health care providers express concern over proposed ACO rules

Health care providers are expressing concern over the proposed ACO rules, which were released in March, according to Politico.com.

Under the proposed rules, Medicare savings are estimated to be between $170 million and $960 million over three years, with the hope that if these models succeed, they will be expanded to privately insured patients. 

According to Politico.com, the biggest concern is the provision which requires ACOs to be at risk of losing money if their costs are higher than expected. There is also a high bar before providers will see any savings.

 

CMS contends that the input that they are receiving will be incorporated into the final rule.  Critics are concerned that if the final rule is too restrictive, not many will participate, and the savings will not be significant, but if the rules are loosened, projected savings will also be reduced.

(Sources: The Advisory Board Daily Briefing, http://advisory.com, May 25, 2011, Politico, http://www.politico.com/, May 24, 2011)