Medicare Shared Savings Program


The Centers for Medicare & Medicaid Services (CMS) has established a Medicare Shared Savings Program (Shared Savings Program) to facilitate coordination and cooperation among providers to improve the quality of care for Medicare Fee-For-Service (FFS) beneficiaries and reduce unnecessary costs. Eligible providers, hospitals, and suppliers may participate in the Shared Savings Program by creating or participating in an Accountable Care Organization (ACO). ACOs must meet quality standards to ensure that savings are achieved through improving care coordination and providing care that is appropriate, safe, and timely.  The Centers for Medicare & Medicaid Services (CMS) has established 33 quality measures on care coordination and patient safety, appropriate use of preventive health services, improved care for at-risk populations, and patient and caregiver experience of care. 

Payment Model: 

CMS rewards ACOs when they’re able to lower growth in Medicare Parts A and B fee-for-service costs (relative to their unique target) while, at the same time, they meet performance standards on quality of care. ACOs can choose to participate under a Track 1 shared savings only model (one-sided model) or Track 2 shared savings and losses model (two-sided model). ACOs who choose to become accountable for shared losses under Track 2 have the opportunity to get a greater portion of shared savings.

Last updated February 2019
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