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How Will the Creation of Accountable Care Organizations (ACOs) Impact Private Insurers?
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This government model is likely to be adopted by the private sector, as private insurers seek new ways to contain costs through closer collaboration with health care providers. Many of the largest health insurers have already announced plans to form their own Accountable Care Organizations (ACOs) and have begun to adopt different variations of payment models — partial/full capitation, shared savings or shared risk — that hold providers accountable if costs are higher than average, but also reward them when costs are lower. Private insurers are also encouraging patients to remain within the private ACO provider network through reduced premiums to enrollees, something that Medicare has not done. Furthermore, insurers are eager to enter the ACO arena, believing they can play an important role because they collect data on patients, which is critical for coordinating care, tracking outcomes and reporting results.

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READ MORE ABOUT THIS TOPIC: Burton, Rachel. “Accountable Care Organizations in Medicare and the Private Sector: A Status Update.” Urban Institute, November 2011, pp. 3-4.
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