Accountable Care Organizations Recognized in Federal Health Reform Proposals
Monday, June 22, 2009
Several health reform proposals have recently emerged out of Congress. The bad news is that Medicare Advantage funding continues to be in jeopardy and only time will tell how deeply this vital healthcare program will be cut. The good news is that several proposals include the concept of the accountable care organization (ACO) as a key mechanism for achieving coordinated, quality healthcare for all Americans.
ACOs were included as part of the Senate Finance Committee proposal for reforming the delivery system, and President Obama recently endorsed the ACO concept. While seemingly novel in the healthcare reform discussion, the principles of ACOs have been fundamental to California’s healthcare delivery and financing system for almost 30 years.
California physician groups – ACOs by any measure – have demonstrated their ability to deliver higher clinical quality, and better efficiency relative to the uncoordinated fee-for-service model, which provides incentives for more, often unnecessary care, which is not the definition of better care. California’s “mature” ACOs have made strides in coordinating patient care -- both within and outside of Medicare Advantage -- using health information technology and implementing disease management protocols. They have also demonstrated that higher quality can produce cost savings if the economic model is properly designed.
Policymakers can learn from the strides California physician groups have already made and can use their progress as a roadmap for development and advancement of ACOs within Medicare reform.
Help us advance the ACO concept. Tell Congress how important coordinated care is to the quality of your health and that ACOs are a fundamental component of delivering this exceptional care.
Send a letter to Congress NOW showing your support for ACOs and the coordinated care model. Go to www.AmericansForCoordinatedHealthcare.org to send your letter to Congress and help shape the most important healthcare reform debate we’re likely to have within the next several decades.
Stay tuned for more updates. Thank you for your interest and continued advocacy.
Coordinated Care Facts
In 2007, Medicare Advantage saved seniors nearly $90 per month or $1000 per year in out of pocket costs. An estimated savings of approximately $7 billion annually. Additionally, compared to traditional Medicare, Medicare Advantage plans can reduce out-of-pocket costs by up to $4,000 annually for patients with the highest healthcare needs.
- Comprehensive Care: Patients receive integrated treatment plans, and expert case management and disease prevention strategies for the chronically ill.
- Cost-Effective Care: Integrated medical groups are able to support investments in advanced healthcare information technology, tracking patient follow-through on treatment plans and patient outcomes, and helping to uncover health problems before they become catastrophic.
- Accessible Care: Efficiencies within the coordinated care delivery model mean better healthcare for more seniors, including:
• lower out-of-pocket costs
• increased health services such as dental care, vision care and preventive care
• reduced hospitalizations
• increased prescription coverage
• higher overall satisfaction rates
• greater value for the premium dollar than any other healthcare delivery system
What’s At Risk
If Medicare reforms dismantle incentives for coordinated care, seniors will experience significant increases in out of pocket costs - at a time when many seniors have seen their retirement account’s decline by over 40 percent in value — and decreased quality of healthcare.
Downloadable Resources
Enter your name and email address to stay up-to-date on the progress we are making towards Coordinated Care reform.
Home The Facts Coordinated Care Profiles Latest News Coordinated Care Letters About Us Privacy Policy
Paid for by the California Association of Physician Groups
An advocate of patients rights and improved national healthcare.
