Participants in the ACO REACH program generated nearly $1 billion in savings in 2024, according to new performance data from the Trump administration.
The Centers for Medicare & Medicaid Services released its latest look at program performance on Thursday, which found $988.3 million in net savings for the federal government from the accountable care program. Gross savings, before accounting for benchmark discounts and shared savings arrangements, were $2.5 billion, according to the report.
Net shared savings payments to the ACOs totaled $1.5 billion, for a shared savings rate of 4.2%.
Most of the 115 ACOs participating in REACH for 2024 earned shared savings, according to the report. Just 19 ACOs, or 17%, posted a net loss, while 96 organizations, or 83%, earned savings.
The participating ACOs also generally maintained high performance on quality, CMS said, with 49 organizations qualifying for the high performance pool that allows them to earn additional financial benefits. This pool was first offered for the 2023 program year, CMS said.
The ACO REACH model is set to conclude at the end of 2026, and the Center for Medicare and Medicaid Innovation will transition to a new model called Long-Term Enhanced ACO Design (LEAD) beginning on Jan. 1.
The decade-long voluntary program will run through Dec. 31, 2026, making it the longest demonstration CMS has ever conducted.
The National Association of ACOs congratulated the participants in a statement, saying the results "demonstrate the success and impact of the model’s innovative design and focus on high-needs populations."
"We look forward to seeing these features scale through the upcoming LEAD model," NAACOs said.
The organization also noted that between ACO REACH and its sister demonstration, the Medicare Shared Savings Program, ACOs generated $9 billion in savings in 2024.
The group Accountable for Health said in a statement that the program "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," Accountable for Health said. "The forthcoming LEAD Model builds on these lessons by strengthening support for providers serving high-needs populations."