June 3, 2025
What’s new: The CMS Innovation Center is updating the ACO REACH Model, including its financial methodology, to ensure the accountable care pilot program can successfully achieve future cost savings.
Why it matters: Changes to the model are projected to decrease net spending for 2026 and improve outcomes for patients without disrupting their care. The updates respond to ACO REACH’s latest preview evaluation report that showed an increase in net spending despite positive gross savings and also positive quality of care results.
What to expect: Changes will be applied starting in 2026 to improve ACO REACH by adjusting the financial methodology and improving model sustainability.
The big picture: Accountable Care Organizations — such as the ACOs participating in ACO REACH — are critical partners for assuming global financial downside risk for patients while also offering patients enhanced benefits — such as care navigation, telehealth visits, home care after leaving the hospital, and help with co-pays. ACOs also enhance support to help patients manage their conditions to keep them healthier longer.
Additional details: Models are subject to updates to ensure they meet the Innovation Center’s statutory mandate. CMS published a list of financial methodology changes to the ACO REACH Model for Performance Year 2026, which will improve the model test while allowing ACOs and their providers to continue to deliver high-quality, coordinated care to their patients. The Innovation Center, which oversees the model, also published a preview evaluation report supporting the need for these changes. It focuses on the first year of ACO REACH, following its revamp and transition from the Global Professional Direct Contracting Model in 2023.
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