CMS Announces Adjustments to ACO REACH for 2026

ACO REACH has been an interesting program for many reasons, chiefly because it aligns incentives among many different kinds of providers including primary and specialty care physicians. Additionally, primary care-led ACOs tend to outperform others given their focus on team-based, coordinated care.

Over time, it is not unusual to see the bar raised as organizations gain experience with value-based approaches. In this vein, CMS has announced changes  for the 2026 performance year to “improve model sustainability” including:

  • Increasing the portion of benchmark that is historical (as contrasted with regional) to 60%
  • Adding a 3% cap on risk score growth from 2019 to 2026 (quality withhold goes from 2% to 5%)
  • Boosting the coding intensity factor ceiling for high-needs ACOs from 1% to 2%

The ACO Reach demonstration is scheduled to end on December 31, 2026, and some think that the changes improve the likelihood that the program will be extended.