Policy & oversight
Medicare Care-Coordination Groups Saved 2.5 Billion Dollars in 2024 and Grew Again for 2026
Three-quarters of Medicare Accountable Care Organizations earned shared savings payments in performance year 2024, and the program expanded to 511 ACOs covering 12.6 million Traditional Medicare patients in 2026.
By the Goodsurance editorial teamJuly 9, 2026
Medicare's Accountable Care Organization program posted its eighth consecutive year of net savings to the Medicare trust funds in performance year 2024. Of the 476 ACOs participating that year, 75 percent earned shared savings payments totaling 4.1 billion dollars. Net savings to Medicare relative to spending benchmarks reached 2.5 billion dollars, according to CMS.
ACOs are networks of doctors, hospitals, and other providers that coordinate care for patients in Traditional Medicare. CMS pays ACOs partly based on quality and on how much they spend relative to a target: when an ACO spends less than its benchmark and meets quality standards, it shares in the savings. The model is designed to encourage preventive care, reduce unnecessary hospitalizations, and avoid duplicative testing.
Medicare care-coordination groups saved 2.5 billion dollars in 2024 and now serve over 12 million patients in Traditional Medicare.
The program has grown steadily. For 2026, CMS approved 511 ACOs, up from 476 in 2025, with more than 700,000 healthcare providers and organizations participating. Those 511 ACOs are responsible for the care of 12.6 million Traditional Medicare patients, a 12.3 percent increase from 2025.
For Traditional Medicare patients, being aligned with an ACO requires no enrollment action. CMS assigns beneficiaries to ACOs based on where they receive most of their primary care. Patients retain full freedom to see any Medicare provider they choose, including providers outside their assigned ACO.
CMS has stated a broader goal of placing all Traditional Medicare patients in an accountable care relationship by 2030.
In plain words
An ACO is a team of doctors and hospitals that works together to keep Medicare patients healthier. If the team does a good job and spends less than expected, Medicare shares some of the savings with them.
In 2024, three out of four ACO teams earned these payments. Together they saved Medicare 2.5 billion dollars.
In 2026, there are 511 teams serving over 12 million people in Traditional Medicare.
If you are in Traditional Medicare, you might already be part of an ACO without knowing it. You do not sign up. You can still see any Medicare doctor you want.
Your Medicare rights stay exactly the same. The ACO adds coordination behind the scenes.
Understand the basics first
Source: CMS
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