CMS Primary Care Payment Model


On Mar. 19, CMS reported on person-centered primary care initiative.


  • CMS issued new initiative to increase investments in person-centered primary care.
  • Payment model for primary care to be tested within Medicare Shared Saving Program.
  • Aims to improve access to high-quality care for underserved Medicare populations.
  • Issued accountable care organization (AOC) primary care flex model fact sheet, FAQs.
  • ACO Primary Care Flex Model
  • New voluntary model empowers providers in eligible accountable care organizations (ACOs) to treat people with Medicare using innovative, person-centered proactive care.
  • ACO Primary Care Flex Model (ACO PC Flex Model) provides 1-time advanced shared savings payment and monthly prospective primary care payments (PPCPs) to ACOs.
  • Savings payments provide ACOs with needed resources and flexibility to cover costs associated with forming an ACO and administrative costs for required model activities.
  • PPCPs will be distributed by ACOs to primary healthcare practices, giving them improved resources and flexibility to provide care that best suits individuals’ needs.
  • ACO PC Flex Model designed to incorporate health equity and address care disparities.
  • Enhanced funding and incentivizes team-based care approaches to medical and social needs, which will create total cost of care savings while preserving/enhancing quality.
  • Rates for the PPCP will be derived from county-average spending to more accurately reflect the cost of providing comprehensive primary care to underserved populations.
  • CMS plans to test this new model within the Medicare Shared Savings Program.
  • Model will focus on, invest in low-revenue ACOs; these historically performed better.
  • Effectiveness
  • ACO PC Flex Model is a five-year voluntary model that will begin on Jan. 1, 2025.
  • Organizations interested in participating must first apply to Shared Savings Program.
  • Shared Savings Program Applications are open May 20, 2024 - Jun. 17, 2024.
  • ACO PC Flex Model request for applications is planned to be released in Q2 2024.

Regulators CMS; HHS
Entity Types Ins
Reference FAQs, Info, PR, 3/19/2024
Functions Claims/Accelerated Benefits; Operations; Reporting
Countries United States of America
Category
State
Products Insurance; Insurance-Health; Medicare
Regions Am
Rule Type Final
Rule Date 3/19/2024
Effective Date 1/1/2025
Rule Id 205378
Linked to N/A
Reg. Last Update 3/19/2024
Report Section US Insurance

Last substantive update on 03/22/2024