Nov. 5, 2021 The Honorable Xavier Becerra Re: NAACOS Feedback on the HHS Draft Strategic Plan for Fiscal Years 2022–2026 Dear Secretary Becerra: The National Association of ACOs (NAACOS) appreciates the opportunity to provide feedback on the department's strategic plan for 2022 through 2026. NAACOS and its members are committed to advancing value-based care models, and in that regard many of our strategic goals align with yours. NAACOS represents hundreds of accountable care organizations (ACOs) participating in a variety of value-based payment and delivery models in Medicare, Medicaid, and with commercial insurers. Serving more than 12 million beneficiaries, our ACOs participate in Medicare models such as the Medicare Shared Savings Program (MSSP), the Next Generation ACO Model (Next Gen), the Global and Professional Direct Contracting Model (GPDC), and other alternative payment models (APMs). NAACOS is a member-led and member-owned nonprofit organization that works to improve quality of care, health outcomes, and healthcare cost efficiency. Our members share the department's goals of protecting and strengthening equitable access to high quality and affordable health care and improving outcomes for patients. NAACOS is committed to advancing the value-based care movement, and our members want to see an effective, coordinated, patient-centric healthcare system that focuses on keeping all individuals healthy. Our comments below reflect our shared goals, and policy recommendations for the department to implement to further advance these goals. Strategic Objective 1.2: Reduce costs, improve quality of healthcare services, and ensure access to safe medical devices and drugs ACO models continue to be one of the most successful value-based models, reaching a significant number of Medicare patients. The goal of value-based care models is to improve quality while reducing costs. The MSSP, the largest of the ACO programs as well as APMs, serves 11.2 million beneficiaries and continues to produce greater savings each year with impressive quality outcomes. In 2019, the MSSP saved Medicare $1.2 billion after accounting for shared savings/loss payments to participants. In 2020, MSSP ACOs collectively generated $1.9 billion in net savings to Medicare and had an average quality score of almost 98 percent. Importantly, this model continues to advance the broader movement to value-based care as the APM accounting for the largest number of participants in Medicare's Quality Payment Program (QPP). To build on the success of the ACO model and to strengthen primary care and patient-provider relationships, we support the Center for Medicare and Medicaid Innovation’s (CMMI) goal to have the majority of traditional Medicare beneficiaries in an ACO by 2030. NAACOS and its ACO members are committed to continuing the advancement of value-based care and improving health outcomes with high-value care. However, the ACO model has faced significant challenges in recent years and participation in the MSSP has declined. To encourage growth in these important programs and models, we urge CMS to make several modifications to ensure the ongoing success of ACOs, thereby contributing savings to the Medicare Trust Fund and improving outcomes for the Medicare beneficiaries. Given the success of the ACO model and the need to strongly support the ongoing transition to value-based care and payment, we urge swift action by HHS and CMS to recalibrate the balance of risk and reward for ACOs to bolster ACO growth, and, as a result, savings to Medicare. Among those changes, we request that CMS reverse certain policies finalized in a 2018 MSSP overhaul, which CMS named "Pathways to Success." This overhaul included some damaging provisions such as a cut to the share of savings rates many ACOs are eligible to keep as well as a push for ACOs and their providers to assume financial risk too quickly. As evidenced by declining ACO participation in recent years, these policies have chilled ACO growth, and we request modifications to restore program growth. We also recommend that CMS focus the value transition squarely on providers, keeping them at the center of payment models instead of implementing programs and policies to attract new players into the traditional Medicare space. Our specific recommendations for restoring robust participation in the premier value-based model are detailed below, including requests to:
Detailed Recommendations Make Adjustments to Quality Reporting and Assessment Changes Quality improvement is a cornerstone of the ACO model. In addition to reducing spending, ACOs must meet quality performance standards to be eligible to receive shared savings payments. ACOs continue to improve quality year over year, which improves patient care and helps to control costs. It is critical that policies to evaluate ACO quality are fair, appropriate, and accurately reflect the work ACOs undertake to improve patient care. While leveraging electronic data sources for quality reporting is an important goal, we have significant concerns about the MSSP quality policies. We believe there is an important opportunity for CMS to revise aspects of the finalized MSSP policies to better support ACOs and promote high-quality patient care. Specifically, we urge CMS to make the following key policy changes:
Our detailed recommendations on this topic are available in our comment letter. Fix ACO Benchmarks We also urge CMS to allow ACOs the opportunity to elect pre-pandemic years for benchmarks for agreements beginning in Performance Year (PY) 2022.Simply put: The highly unusual circumstances of a global pandemic make it inappropriate to use 2020 as a benchmark year for certain ACOs. While ACOs recorded a very successful year overall in 2020, some were hurt by the pandemic because of MSSP's benchmarking polices. CMS updates final benchmarks to account for actual spending in a performance year using a blended national-regional adjustment. While nationally Medicare spending fell by roughly 7 percent in 2020, some ACOs’ local populations continued to have routine office visits and elective procedures as if it were 2019. As a result, many of those ACOs showed losses in 2020. Analysis conducted by the Institute for Accountable Care earlier this year demonstrated this huge variation in spending between 2019 and 2020. For example, spending in the Boston area fell by more than 12 percent between 2019 and 2020, even when excluding COVID-related costs. Spending fell by more than 11 percent in New York City and Northern New Jersey and by more than 10 percent in Miami. However, spending in places like Idaho and West Texas only fell by a couple of percentage points between 2019 and 2020. Absent any changes to the methodology, ACOs entering the MSSP in 2022 will have their benchmarks largely based on their historic spending from 2019–2021, which includes two pandemic years. ACOs renewing an agreement in MSSP will also have their benchmarks rebased in 2022 using the same pandemic-stricken years. For some, it would be more appropriate to use pre-pandemic years of 2017–2019 as a baseline and trend those forward, which would provide a more accurate, realistic representation of per patient spending averages than using highly variable, severely impacted pandemic years. We also request CMS fix other ongoing benchmarking issues. We urge CMS to correct the MSSP benchmarking issue known as the "rural glitch" to more appropriately evaluate ACO performance. The current method compares an ACO's spending to a blend of its historical spending and regional spending. However, including ACO-assigned patients in the regional component makes it necessary for the ACO to 'beat' its own performance twice, thus defeating the purpose of using a regional comparison. While this issue harms any ACO with spending lower than its region, this is particularly problematic when an ACO makes up a large portion of a particular area, which is often the case for ACOs in rural areas. NAACOS has repeatedly called on CMS to fix this benchmarking flaw by removing ACO-assigned beneficiaries from the regional reference population, which should be implemented as soon as possible. Specifically, to do that CMS should remove ACO beneficiaries from calculation of the regional risk-adjusted per member, per year (PMPY) spending. This correction would ensure fair and accurate ACO benchmarks that will reduce Medicare costs and improve quality for beneficiaries, which are two key goals for HHS. Increase the Onramp for Assuming Risk to Encourage Widespread Participation Restore Shared Savings Rates to Incentivize Participation Ensure Incentives for APM Adoption Can Be Reasonably Met Address the Increasing Problem of APM Overlap Make Improvements to the Direct Contracting Model Specifically, we recommend CMS take the following actions:
Develop a Permanent, Advanced Model of the MSSP
Improve ACOs’ Access to Data to Enhance Their Ability to Coordinate Beneficiary Care Section 3221 of the Coronavirus Aid, Relief, and Economic Security (CARES) Act modernizes the privacy of treatment records for substance use disorder (SUD) by creating parity between 42 CFR Part 2, which governs SUD privacy, and the Health Insurance Portability and Accountability Act of 1996 (HIPAA). As the department works to implement the CARES Act, we urge you to address the important issue of claims and data access for providers practicing in APMs. ACOs, for example, are provided claims data at least monthly, and sometimes weekly, through Claim and Claim Line Feed (CCLF) files, but these data lack SUD-related information because of the limits of Part 2 law. Without access to such claims data, ACOs and other APM participants risk treating the whole patient with only part of their data, potentially harming patient care and outcomes. By aligning Part 2 with HIPAA, the CARES Act allows sharing of this important data after initial patient consent, which will allow CMS to deliver this critical information to providers operating in ACOs. We urge you to work with your HHS partners to send SUD-related claims data to providers practicing in ACOs and other APMs to help support their work in population health management. CMS’s HIPAA Eligibility Transaction System (HETS) allows providers to check Medicare beneficiary eligibility in real-time using a secure connection. CMS should make HETS feeds available to ACOs and Medicare providers participating in APMs to better understand, in real-time, where patients seek care in the health system. ACOs' access to critical HETS information in real time would allow ACOs to further enhance care coordination, improve patient outcomes, and reduce costs — all are tenets of advancing value-based payment models. For example, a real-time alert to a patient visiting an urgent care center would allow ACOs to intercede to assist the patient in their immediate care needs. NAACOS developed, with the assistance of technical experts, an outline for an ACO Inquiry Notification System. The system, operated by a registered third party, would serve as a secure, point-of-service notification system. Leveraging real-time data feeds from HETS, the notification system would alert ACOs when one of their assigned patients may be seeking care or receiving services outside the ACO. This would limit customization and provide a simplified, user-driven approach to extract data from the current HETS system. Alternatively, CMS could allow Medicare ACOs the ability to securely access the system independently and monitor for their patients. Modernize Telehealth Requirements Remove the Burdensome Beneficiary Notification Requirement Strategic Objective 1.3: Expand equitable access to comprehensive, community-based, innovative, and culturally-competent healthcare services while addressing social determinants of health Strengthening the ACO model and other total cost of care models provides an important lever by which health inequities can be reduced and social determinants of health can be addressed in a wholistic manner. Improving health equity is critical to delivering high quality care in a cost effective manner, as some research shows that social drivers of health contribute more significantly to health outcomes than medical care.1 Social risks and social needs cannot be addressed if they are not adequately measured, tracked, and reported.2 Innovative payment and care delivery models that rely on data provide an opportunity to better understand and highlight existing disparities and the tools to tailor interventions based on individual need. For example, ACOs assume accountability for a population's cost and quality of care, and many are beginning to address patients' social needs such as housing, transportation, and food insecurity as a way to improve health outcomes.3 Other examples of initiatives being implemented by ACOs to improve health equity include:
To continue and build upon these activities, ACOs need appropriate tools, data, financial incentives, and resources to address health equity and develop partnerships with community-based organizations (CBOs). Due to their accountability for the total cost and quality of care for a patient population, ACOs are uniquely positioned to develop and test health equity-focused interventions. To further ACOs' work in this area, we recommend the following policy changes:
These recommendations are discussed in further detail in this NAACOS authored white paper on how to better position ACOs to address health inequities and SDOH. Strategic Objective 1.4: Drive the integration of behavioral health into the healthcare system to strengthen and expand access to mental health and substance use disorder treatment and recovery services for individuals and families. Given ACOs’ accountability for quality and total cost of care, they are motivated to provide coordinated, integrated care, and integrating behavioral health into population health management strategies could significantly improve outcomes and increase savings for ACOs.4 While many ACOs have begun integrating behavioral health, there are significant challenges and barriers to successful integration including workforce shortages, especially in rural areas, lack of sustainable funding, and data access issues. In order to help address the shortage of behavioral health providers, NAACOS has recommended testing telehealth expansions within the ACO model. As detailed in our feedback on Strategic Objective 1.2, NAACOS argues that that since ACOs are held accountable for patients and are increasingly at financial risk for their spending and quality, they should be granted waivers to use telehealth more broadly than other providers. Securing funding for integrated care not reimbursed under a fee-for-service system is another challenge. Additionally, significant upfront investment is required to implement behavioral health information into practice. Therefore, ACOs should be provided with financial incentives to integrate behavioral health. Issues with data access, particularly SUD-related data, were discussed earlier in this letter. Additionally, behavioral health clinicians should be offered incentives to adopt EHRs and facilitate information exchange between providers.5 While behavioral health was not incorporated into the original federal ACO architecture, researchers have found significant interest in integrating behavioral health providers into the ACO model and key policy changes could enable ACOs to successfully and sustainably integrate behavioral health.6 NAACOS is engaged in continued discussions with our members and other stakeholders to understand challenges and develop solutions for meaningfully integrating behavioral health into the healthcare system. We look forward to working with the department to ensure that ACOs are able to meet the behavioral health needs of their patient populations. Conclusion In conclusion, we stand ready to work with the Department of Health and Human Services to achieve these shared strategic goals and further advance value-based care for all Medicare patients. NAACOS and its members are committed to providing the highest quality care for patients while advancing population health goals for the communities they serve and will be instrumental in achieving these goals. We look forward to our continued work with the Department and the Centers for Medicare and Medicaid Services to further the work of value-based care. Sincerely, Clif Gaus, Sc.D. 1 https://www.ajpmonline.org/article/S0749-3797(15)00514-0/fulltext 2 https://www.nap.edu/read/12875/chapter/1#xiii 3 https://www.healthaffairs.org/doi/10.1377/hlthaff.2016.0727 4 https://www.ajmc.com/view/treating-behavioral-health-disorders-in-an-accountable-care-organization 5 https://bipartisanpolicy.org/download/?file=/wp-content/uploads/2021/03/BPC_Behavioral-Health-Integration-report_R03.pdf 6 https://www.nasmhpd.org/sites/default/files/Assessment%207_Integrating%20Behavioral%20Health%20into%20ACOs.pdf |