Washington, D.C. (July 10, 2026)
According to new data released by the Centers for Medicare and Medicaid Services (CMS), ACO REACH generated nearly $1 billion in savings for the Medicare program in 2024 after accounting for shared savings and other incentive payments while maintaining strong quality performance. The ACOs participating in the model, which collectively cared for 2.5 million Medicare beneficiaries, achieved an impressive 6.7% net savings rate, while gross savings per beneficiary per month increased 24% between 2023 and 2024. The model continues to demonstrate stronger financial performance year after year.
The 2024 results reinforce that accountable care continues to deliver value for Medicare beneficiaries and taxpayers. High Needs ACOs led the way with a remarkable 14% net savings rate, underscoring the success of policies that better support providers caring for Medicare’s sickest and most medically complex patients. The forthcoming LEAD Model builds on these lessons by strengthening support for providers serving high-needs populations.
At the same time, CMS also released its third evaluation of the model, which examines performance in 2023 using a separate evaluation methodology. While the report identifies quality improvements across multiple areas—including fewer avoidable hospitalizations, more timely follow-up care, and better diabetes management—it reaches different conclusions about the model’s financial impact than CMS’s own financial reconciliation.
These differing conclusions underscore the need to modernize how accountable care models are evaluated.
The current evaluation methodology was developed when accountable care represented a relatively small share of traditional Medicare. Today, more than half of traditional Medicare beneficiaries receive care from providers participating in accountable care arrangements. Identifying an appropriate comparison group has become increasingly difficult, causing the evaluations to understate the impact of accountable care. Additionally, the evaluation reflects performance from 2023, and the model has evolved through multiple changes since then. Policymakers should place greater weight on the most current evidence available as they consider the future of accountable care.
Measuring today’s accountable care models using methodologies designed for a much smaller, earlier generation of value-based care risks overlooking the progress these models are making for patients and the Medicare program.
Accountable for Health remains committed to working with CMS and policymakers to strengthen accountable care models, improve evaluation methods, and accelerate the transition to a healthcare system that rewards better outcomes rather than higher volume.
Contact:
Mara McDermott, CEO of Accountable for Health
mmcdermott@accountableforhealth.org
About Accountable for Health
is a 501(c)(4) national advocacy and policy analysis organization accelerating the adoption of sustainable, effective accountable care that improves health care quality and outcomes and lowers costs. We represent a broad, diverse group of accountable care stakeholders working to improve the way health care is delivered to people across the country, across various payers, programs, and delivery models. A4H provides advocacy, research, and education to improve outcomes and patient experiences while lowering costs.
For more information, visit https://accountableforhealth.org/. Follow us on LinkedIn and Twitter (@acct4health). ###
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