To amend title XVIII of the Social Security Act to establish a full risk ACO program.

Plain-English Summary

This bill would make changes to Medicare — the federal health insurance program primarily for Americans 65 and older and certain people with disabilities — by creating a new type of healthcare arrangement called a "full risk Accountable Care Organization" (ACO) program. An ACO is a group of doctors, hospitals, and other healthcare providers who voluntarily work together to coordinate care for patients. Under a "full risk" model, these provider groups would take on greater financial responsibility for the total cost of care for their Medicare patients, meaning they could earn more money if they keep patients healthy and costs low, but would also be responsible for covering costs if spending runs too high.

The core idea behind this type of program is to shift Medicare away from the traditional "fee-for-service" model — where providers are paid for each individual service or procedure — toward a system that rewards better health outcomes and efficiency. Provider groups that join the program would have a strong financial incentive to prevent unnecessary hospitalizations, coordinate care between specialists, and manage patients' long-term health more proactively.

This bill would most directly affect Medicare patients and the healthcare providers who treat them, such as doctors' practices, hospital systems, and health networks. For patients, the goal is improved, more coordinated care. For providers, participation would mean both greater financial opportunity and greater financial risk. Taxpayers and the federal budget could also be affected, as the program is designed with the goal of reducing overall Medicare spending over time.

The bill has been introduced in the House of Representatives and referred to two committees — Ways and Means and Energy and Commerce — where it will be reviewed before any further action is taken.