The accountable care organizations were developed initially as an effort put forth by the Affordable Care Act to cut down on costs, but in turn has yet to save anywhere close to the $5 billion that the CBO projected to save by 2019.
ACO’s were intended to operate efficiently to save money, by rewarding savings to ACO’s who provide healthcare under certain cost targets. Upon it’s start in 2012, ACO’s have gained 10 million beneficiaries.
The Trump administration is making an effort to overhaul the ACO program, which would decrease the number of participating providers, but the overhaul is expected to decrease medicare spending.
The Trump administration is currently making multiple efforts to undo many of the actions enacted by the Obama administration through the Affordable Care Act. By 2020, Medicare plans to end the no-risk model for ACO’s.
Read the original article from Kaiser Health News here.