Washington, D.C. (August 29, 2025)
“Medicare’s permanent ACO program delivered record savings in 2024 — $6.5 billion in gross savings and $2.44 billion after shared savings and loss payments, and over $13 billion in gross savings when accounting for effects across the Medicare program. This is further proof that when providers are held accountable for both spending and outcomes, patients receive better care at lower cost.
“Importantly, 82 percent of the $6.5 billion came from ACOs taking on two-sided financial risk, meaning they would have had to repay Medicare if spending exceeded targets. True financial accountability continues delivers the strongest results.
“Unfortunately, the financial incentives that fueled progress to two-sided risk expired last year. We urge Congress to revisit physician payment policy that creates strong, meaningful incentives for participation in two-sided risk arrangements – we now have over a decade of evidence that those reforms will be worthwhile.
“The bottom line: accountable care with two-sided risk is driving Medicare’s savings and quality improvements. Congress and the Administration should continue to incentivize participation in accountable care through legislation that creates meaningful differences between accountable care and fee-for-service, and prioritizing stability for participants in two-sided risk arrangements.”
Contact:
Mara McDermott, CEO of Accountable for Health
mmcdermott@accountableforhealth.org
About Accountable for Health
Accountable for Health (A4H) 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 lower costs. We represent a broad, diverse group of accountable care stakeholders working to improve the way health care is delivered to people across the county, 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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Accountable for Health supports the introduction of the bipartisan Patients First Act and looks forward to working with the bill's sponsors to strengthen these proposals and ensure they maximize physician participation in accountable care and improve quality while lowering costs for Medicare beneficiaries.
Accountable for Health is encouraged that CMS’s 2027 Physician Fee Schedule proposed rule recognizes the central role primary care must play in building a stronger, more sustainable Medicare program.
Accountable for Health welcomed 2024 ACO REACH results, which showed nearly $1 billion in net Medicare savings while maintaining strong quality, further demonstrating the value of accountable care. We also urged policymakers to modernize how accountable care models are evaluated so assessments better reflect today's landscape and the latest evidence.
