Introducing Permanent Full Risk ACO Program for Medicare

In a significant legislative move, Representatives Claudia Tenney and Brad Schneider have introduced a bill to establish a permanent full risk Accountable Care Organization (ACO) program within Traditional Medicare. This initiative aims to extend the reach of coordinated, high-quality care while reducing costs for patients and taxpayers alike.

Accountable Care Organizations improve patient outcomes and lower expenses by coordinating care among providers and focusing on preventive measures and chronic disease management. Traditionally, ACOs have operated through temporary pilot programs, limiting long-term engagement and investment. However, as of 2026, over 14 million Medicare beneficiaries receive care through ACOs, which have shown notable savings and enhanced care quality. The proposed bill seeks to create a permanent structure for providers to engage in full risk arrangements, encouraging sustained investment and access to innovative care methods.

The bill proposes the establishment of a Full Risk ACO Program, offering a model where providers accept full responsibility for financial and quality outcomes, moving beyond traditional fee-for-service models. It offers two specific pathways: a Standard Full Risk ACO for the general Medicare population and a Complex Care Full Risk ACO targeting high-needs patients with multiple chronic illnesses. These tailored approaches are designed to enhance patient care while minimizing unnecessary expenditures.

Congresswoman Tenney emphasized the need for a system that surpasses "one-size-fits-all" solutions to deliver improved outcomes for Medicare beneficiaries. She noted that although current ACO models effectively lower costs and elevate care, they still function within constrained pilot programs. The bill aims to transition this structure into a permanent fixture, improving coordinated care while protecting taxpayer resources.

Congressman Schneider highlighted the decade-long success of ACOs in delivering patient-centered care, achieving cost savings, and improving health outcomes. He stated that the introduction of a "full risk" ACO would provide financial stability through enhanced payment models, ensuring consistent, high-quality care.

Mara McDermott, CEO of Accountable for Health, expressed support for the initiative, citing the proven effectiveness of accountable care in enhancing quality while addressing affordability within Medicare. McDermott commended the bipartisan effort to solidify accountable care as a sustainable option for providers and beneficiaries.