CMS’ Center for Medicare and Medicaid Innovation just unveiled its highly anticipated Geographic Direct Contracting Model replacing all current ACO demos starting April 1.
The mixed-success first generation ACO demos are about to expire. But instead of just extending them the agency opted to start a second generation. That’s a tacit recognition that the term ‘ACO’ is now tainted, with half of them a failure and no clear path to fixing the acronym to take it mainstream.
The change will consolidate all existing ACO models into direct-contracting entities and “will implement regionwide care delivery and value-based payment,” CMS said in a fact sheet. The Innovation Center will test the model for six years.
The first three-year performance period will kickoff on Jan. 1, 2022, and run through Dec. 31, 2024. The second will start Jan. 1, 2025, and end Dec. 31, 2027. But it will only accept applications from organizations in 15 regions and excludes huge major markets like Chicago and New York.

SOURCE: Health Plan Markets