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Nowadays, most physician networks organize associations under various legal structures to ultimately improve care coordination and health outcomes for patients. In fact, the Medicare shared savings program (MSSP) and Accountable Care Organization (ACO) Realizing Equity, Access, and Community Health (REACH) under the Affordable Care Act encourage providers to collaborate in providing high quality, efficient care to Medicare beneficiaries. Both MSSP vs. ACO REACH help pay for the healthcare costs of members, but there are enough differences between the two that it’s important to know how these models work.
In the hopes of improving quality and lowering overall healthcare costs, the Centers for Medicare and Medicaid Services (CMS) designs the MSSP to test a new approach to Medicare payment. The idea of the MSSP is that provider groups, or ACOs, must receive rewards when they keep spending under a set limit and penalize them when they exceed it. It’s a different way of paying providers than what many know, as organizations are moving away from the fee-for-service arrangement. Now, each physician gets a flat rate per patient, and they have to work together with other providers in the network to keep their patients healthy and reduce costs. This way, patients can have the care they need and providers can earn the right payment for the work they do.
The ACO REACH program is an alternative to MSSP that is available to eligible physician practices and certain non-physician providers. As part of MSSP, ACO REACH intends to promote better coordination and care for Medicare beneficiaries. However, the ACO REACH program is not the same as the MSSP. MSSP vs ACO REACH have different standards and different goals, including the following:
Health equity plans
While MSSP employs risk scoring to establish standards that, depending on their scores, can help them earn higher savings, ACO REACH builds its own health equity plan and collects key demographic and determinants of health data for its aligned beneficiaries.
Payment method
Whereas MSSP uses the tried-and-true FFS payment model, ACO REACH provides more advanced alternative payment arrangements, such as capitation and preferred provider arrangements, and includes additional benefit enhancement.
Program structure
MSSPs also have more flexibility in how they structure their programs and how they provide care. For example, MSSPs can choose to focus on preventive care, chronic disease management, or both. ACOs, on the other hand, are required to provide care for all Medicare beneficiaries, and they must meet certain quality standards set by CMS.
The comparison of MSSP vs ACO REACH has always been one of the most talk-about programs in the healthcare industry. With CMS’s goal to make healthcare more sustainable, they are continuing to push initiatives like these. As a value-based care solutions provider, MedVision has been continuously keeping up with industry leaders like CMS. Driven by our goal to help ACOs in their processes, we develop infrastructure and technology solutions for healthcare organizations like yours to support you in managing business operations, simplifying complex workflows, and increasing your bottom line through a systematic approach that automates mundane day-to-day tasks.
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