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In 2016, the Next Generation Accountable Care Organization (ACO) model generated a net savings of $62 million to Medicare, representing a 1.1% net reduction in Medicare spending. In a webcast with the Accountable Care Learning Collaborative, CMS Administrator Seema Verma called the results a strong start and offered a look at what's in the future for the model.

Among Medicare beneficiaries, the relationship between fragmented ambulatory care and subsequent emergency department visits and hospital admissions varies with the number of chronic conditions. Check out our website’s new table/figure pop-up feature! Click on the name of a table or figure in the text to see it in your browser.

This week, the top managed care stories included CMS outlining a plan to encourage Medicare accountable care organizations to take on more risk, faster; a study found substantial growth in Medicaid managed care enrollment; an analysis showed nearly 1 in 5 inpatient hospital stays includes a claim from an out-of-network provider.

Following CMS’ announcement of a proposed rule to overhaul the Medicare Shared Savings Program, the National Association of ACOs (NAACOS) released a statement, saying the move will “upend the ACO [accountable care organization] movement by creating havoc with a significant overhaul introducing many untested and troubling policies.”

CMS is proposing an overhaul for accountable care organizations (ACOs) participating in the Medicare Shared Savings Program by reducing the amount of time an ACO can stay in a 1-sided risk arrangement to 2 years. CMS said it expects to save about $2.24 billion over 10 years even as the number of ACOs drop. CMS is renaming the program "Pathways to Success."

Senator Bernie Sanders, I-Vermont, has claimed his Medicare-for-all plan will cut healthcare spending by $2 trillion, but fact checking shows that's unlikely; CVS' CEO defends its pharmacy benefit manager against claims rebates are driving up drug prices; researchers have found that immigrants have healthcare costs that are half to two-thirds of the costs of people born in the United States.

If patients want to be empowered to control their healthcare and if the United States wants healthcare to be economically efficient, then interoperability is critical, said Don Rucker, MD, the National Coordinator for Health Information Technology (IT), during the Office of the National Coordinator for Health IT’s 2nd Interoperability Forum. He was followed by CMS Administrator Seema Verma, who disparaged the current technological situation and painted a future where health data followed the patient and can be shared at the press of a button.

One of the reasons why hospital readmissions for the elderly are remaining high may be posthospital syndrome; priority review vouchers, which can be awarded by the FDA to 1 company and sold for a hefty price to another, are commanding a lower price than in past years; almost 8 months after Amazon, JP Morgan Chase, and Berkshire Hathaway announced their joint healthcare venture, there is little public information about it.

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