CMS new accountable care model seen benefitting value-based care providers

2025-12-19 06:23

CMS on Thursday unveiled its new model for accountable care organizations (ACOs), a 10-year voluntary pilot program that aims to have health care providers provide value-based care.
The Long-term Enhanced ACO Design ("LEAD") model is set to begin in 2027, after the current ACO model, REACH, ends.
CMS said that LEAD improves upon the previous model by addressing financial and administrative obstacles experienced by providers that led some of them to drop out by giving them "enhanced, flexible cash flow payments; and greater freedom and tools to support spending time with and meeting patient needs, including those with specialized care needs."
"LEAD also will focus on better serving coordinated care for high-needs patients, such as those dually eligible for Medicare and Medicaid, and those who are homebound or home limited," CMS said.
Jefferies reacted positively to the new model, saying that it gives future flexibility and stability for value-based care in Medicare fee-for-service.
Companies involved in helping to support ACOs include Astrana Health (ASTH), agilon health (AGL), and Privia Health Group (PRVA).

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