Health Reform Connect

On Thursday October 20, 2011, the Department of Health and Human Services released for public inspection the final rule implementing the Medicare Shared Savings Program for Accountable Care Organizations ("ACOs"), which originates under section 3022 of the Patient Protection and Affordable Care Act ("PPACA").  The proposed version of the rule was met with significant consternation on the part of the industry players who will likely form ACOs.  There has been general agreement among the key stakeholders that the proposed rule was overly prescriptive and too burdensome.  Due to that fact, many who submitted comments on the proposed rule suggested that an interim final rule be published before a final rule.  While HHS states in the final rule that it attempted to reduce or eliminate burdensome and prescriptive requirements that may discourage participation in the Shared Savings Program, HHS declined to publish an interim final rule as it was apparently satisfied enough with the framework of the proposed rule such that an interim final rule was not merited.    

The official version of the final rule will be published in the Federal Register on November 2, 2011, at which time it is expected that the Innovation Center will officially launch its Advance Payment Model program, which is aimed at determining if pre-payment of a portion of future shared savings might spur ACO participation.  Information on the Advances Payment Model program can be found here.

For more information on the Final Rule, please contact one of our health care reform lawyers, Leigh Ann O'Neill or Tom Neal.