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CMS Proposes Medicare ACOs Can Cut Cost-Sharing for Part B Services Starting in 2027
The Centers for Medicare and Medicaid Services proposed on Thursday an overhaul allowing approved accountable care organizations to reduce or eliminate certain beneficiary cost-sharing under Original Medicare. The changes would take effect as soon as 2027 if finalized and align with the administration's Make America Healthy Again directive.
Jul 17, 7:09 AM·1m read2 sources
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The Centers for Medicare and Medicaid Services proposed on Thursday an overhaul of Medicare services that would allow approved accountable care organizations to reduce or eliminate cost-sharing for certain Part B services beginning in 2027. Newsweek reported that the plan targets Original Medicare, which serves roughly 70 million Americans, and seeks to move away from the fee-for-service model that has paid providers based on the volume of services for decades.
Under the proposal, seniors assigned to ACOs in the Medicare Shared Savings Program could see specific charges for certain Part B items and services cut or removed.
CMS stated it intends to reward providers for coordinating care and improving long-term health outcomes rather than the volume of services delivered. The regulatory changes align with the administration's Make America Healthy Again directive, which followed the creation of the Make America Healthy Again Commission in February 2025.
CMS is also recognizing Software as a Medical Service and investigating clinical artificial intelligence for diagnostics and algorithmic decision-making.
The agency said it is seeking more information on how technology is used in primary care to develop a consistent payment approach for technology-enabled services. A 2026 Congressional Research Service report noted that Medicare payments for services are typically higher in hospital outpatient departments than in physician offices.
The American Hospital Association has previously stated that facility fees help pay for 24/7 emergency and trauma services, regulatory requirements, medical equipment, and community infrastructure.
