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Centers for Medicare & Medicaid Services
CMS Moves Closer to Accountable Care Goals with 2025 ACO Initiatives; Launches ACO PC Flex Model

The Centers for Medicare & Medicaid Services (CMS) has released participation data that shows substantial progress on its goal for all people with Traditional Medicare to be in a care relationship with accountability for quality and total cost of care by 2030.

As of January 2025, 53.4% of people with Traditional (fee-for-service) Medicare are in an accountable care relationship with a provider. This represents more than 14.8 million people and marks a 4.3 percentage point increase from January 2024, the largest annual increase since CMS began tracking accountable care relationships. These relationships include patients whose providers are in Accountable Care Organizations (ACOs), including the Medicare Shared Savings Program ACOs and Center for Medicare and Medicaid Innovation (Innovation Center) accountable care models, as well as other Innovation Center models focused on total cost of care, advanced primary care, and specialty care.

*2025 Participation Highlights*

For 2025, 103 ACOs are continuing their participation in the Innovation Center’s ACO Realizing Equity, Access, and Community Health Model [ https://www.cms.gov/priorities/innovation/innovation-models/aco-reach ], and 78 Kidney Contracting Entities and 15 CMS Kidney Care First Practices are continuing their participation in the Kidney Care Choices Model [ https://www.cms.gov/priorities/innovation/innovation-models/kidney-care-choices-kcc-model ].

The Innovation Center also launched the ACO Primary Care Flex (ACO PC Flex) Model [ https://www.cms.gov/priorities/innovation/innovation-models/aco-primary-care-flex-model ] on January 1. The model includes 24 ACOs that jointly participate in the Medicare Shared Savings Program. ACO PC Flex is a voluntary model that focuses on primary care delivery in the Medicare Shared Savings Program and aims to increase the number of low-revenue ACOs in the program. PC Flex ACOs partner with several types of providers, including approximately 1,013 Federally Qualified Health Centers, 58 Rural Health Clinics, and 8 Critical Access Hospitals.

Additionally, for the 2025 performance year, CMS approved 228 applications for the Medicare Shared Savings Program, including 55 new ACOs and 173 renewing or reentering ACOs, the largest annual number of renewals in the 12-year history of the program. This brings the total number of ACOs participating in the Medicare Shared Savings Program for Performance Year 2025 to 476.

*More Information*

View the 2025 CMS ACO participation fact sheet [ https://www.cms.gov/newsroom/fact-sheets/cms-moves-closer-accountable-care-goals-2025-aco-initiatives ].

Additional details on CMS Innovation Center ACO models are available on the model webpages:


* ACO Primary Care Flex Model [ https://www.cms.gov/priorities/innovation/innovation-models/aco-primary-care-flex-model ]
* ACO Realizing Equity, Access, and Community Health Model [ https://www.cms.gov/priorities/innovation/innovation-models/aco-reach ]
* Kidney Care Choices Model [ https://www.cms.gov/priorities/innovation/innovation-models/kidney-care-choices-kcc-model ]

Follow us on: X (formerly Twitter [ https://twitter.com/CMSinnovates ])  | LinkedIn: Centers for Medicare & Medicaid Services [ https://www.linkedin.com/company/centers-for-medicare-&-medicaid-services ]
Visit the CMS Innovation Center website [ https://www.cms.gov/priorities/innovation/overview ]

Centers for Medicare & Medicaid Services (CMS) has sent this update. To contact Centers for Medicare & Medicaid Services (CMS) go to our contact us [ http://www.cms.gov/About-CMS/Agency-Information/ContactCMS/index.html ] page.

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