The Obama administration touted ACOs as one of the most promising reforms in the 2010 federal health care law.  The administration set a goal that by the end of 2018, half of Medicare spending currently based on the volume of procedures a doctor or hospital performs will instead be linked to quality and frugality.  But, so far the ACO program generally has been a one-way street, with most doctors and hospitals happy to accept bonuses while declining to be on the hook for a share of any excessive costs run up by their patients.

After paying bonuses to the strong performers, the ACO program, in 2014, resulted in a net loss to Medicare of nearly $3 million, government records show.

ACOs are still in their infancy, and it is quite possible that performances will improve with experience and ultimately save significant sums for Medicare while improving care for beneficiaries.  Nonetheless, the results are short of what Medicare projected in 2011 when it launched the program.  Those estimates anticipated the government would save between $10 million and $320 million during 2014.

You can read more about the issues related to ACOs at the link below.

Kaiser Health News – Accountable Care Organizations

About Jerry

Jerold E. Rothkoff, a practicing New Jersey and Pennsylvania attorney, is the Principal of the Rothkoff Law Group, an elder care law firm. Jerry dedicates his practice to serving clients in the areas of life care planning, long-term care planning, Medicaid & VA benefits, and advocacy for the elderly and disabled. He is past President of the NJ Chapter of the National Academy of Elder Law Attorneys, former chair of the elder law section of the NJ State Bar Association, and past President of the Life Care Planning Law Firm Association. Jerry continues to be an outspoken advocate for the rights of the elderly and disabled. He writes for and gives presentations regularly to attorneys and other professionals about legal issues related to seniors and those with disabilities. Jerry’s community activities include the Twilight Wish Foundation, the Delaware Valley Stroke Council, the Alzheimer’s Association, as well as numerous other advocacy groups. When not in the office, Jerry spends time with his wife, Erica, and their five children, eighteen-year old identical twin girls, Liza and Julia, fifteen-year old fraternal twin boys, Evan and Gregory, and six-year old Aitan.

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