The healthcare landscape in the US is constantly evolving, and the CMS have recently unveiled a significant development - the ACO Reach Program. It marks the next evolution of Direct Contracting, a model aimed at enhancing the attractiveness of the program and focusing on health equity. Direct Contracting is part of CMS's strategy to transition away from fee-for-service reimbursement and towards value-based models. It seeks to improve the quality of care while reducing costs.
The Scrapping of the Geo Program
One of the most significant changes in the ACO Reach Program is the scrapping of the Geo Direct Contracting model. Originally launched during the Trump administration, the Geo model aimed to allow a wider range of risk-bearing entities to take on risk for patients across an entire market. However, due to complaints and concerns, the Biden administration decided to discontinue this program. This move has implications for organizations seeking to expand their presence in the Medicare Advantage market.