Value-Based Care News

ACO Participation Cuts Medicare Spending on Serious Mental Illness

A new study shows that ACO participation in the Medicare Shared Savings Program modestly reduced Medicare spending for patients with serious mental illness, suggesting more effort to be made.

Medicare spending on serious mental illness down after ACO participation, study shows

Source: Getty Images

By Jacqueline LaPointe

- Mental healthcare is costly for both Medicare and its beneficiaries, but ACO participation may help reduce the expenses for those facing serious mental illness, according to a new study published in Health Affairs.

Researchers from Harvard and Yale University analyzed a sample of Medicare administrative data from 2009 to 2017. They found that ACOs participating in the Medicare Shared Savings Program (MSSP) achieved small savings for Medicare fee-for-service beneficiaries with serious mental illnesses after five years of participation in the program. Total healthcare savings were about $233 per person per year.

However, most of the savings were related to reductions in spending on medical conditions, which included spending on inpatient care, home health care, physician fees, and skilled nursing facility payments. The savings were about $227 per person.