CMS just put out its 2024 performance data for the Medicare Shared Savings Program, and the debate around the effectiveness of MSSP rages on despite last year’s record performance.
MSSP saved Medicare $2.4B in 2024, marking the eighth consecutive year of savings and the highest total since the program’s inception in 2012.
- The program generates savings by working with accountable care organizations to cut down on avoidable utilization, duplicative care, and medical errors.
- The ACOs that can effectively improve care quality and reduce total spend are able to share in that success, and last year saw 75% of participating ACOs nab $4.1B in performance incentives, a new all-time-high.
Accountable care works. ACOs in the MSSP saw their average percentage of beneficiaries with controlled high blood pressure climb to 79.5% in 2024 (up from 77.8% in 2023), and the share of those with poor hemoglobin A1c control improve to 9.4% (from 9.8%).
- Low revenue ACOs (typically physician-led) continue to outperform high revenue ACOs (typically hospital-led), generating $316 net per capita savings (vs. $175).
- Most ACOs also performed better than comparable physician groups on quality measures, such as screening for depression and creating follow-up plans (53.5% vs. 44.4%).
The job is far from over. Although at first glance 2024 was one of MSSP’s best year to-date, it’s worth noting that total Medicare spending also reached a staggering $1.52 trillion.
- That means that MSSP, the crown jewel of CMS value-based care programs that includes 476 ACOs equipped with some of the best care delivery tools in the industry, delivered an overall savings of just 0.18%.
- $2.4B is nothing to scoff at, but it highlights the sheer size of the task at hand, and the reality of the situation is that Medicare spending is sky-rocketing a lot faster than MSSP savings.
The Takeaway
MSSP had a great 2024 by almost every metric, and the ACOs participating in the program are the tip of the spear for improving the healthcare system as a whole. That said, it’s a long journey to lower overall Medicare spending even with $2.4B steps, and there’s still plenty of work to be done to help get there faster.
