In a letter to the Centers for Medicare & Medicaid Services regarding accountable care organizations (ACOs), the Medicare Payment Advisory Commission supported a two-sided financial risk model to give more ACOs more incentive to control spending.

Recently the Medicare Payment Advisory Commission (MedPAC) commented to the Centers for Medicare & Medicaid Services (CMS) that regulations governing accountable care organizations (ACOs) participating in Medicare’s Shared Savings Program should include a “two-sided” financial risk model for providers, inform Medicare beneficiaries when assigned to an ACO and possibly allow them to “opt out,” and address quality measures and spending growth targets.