Question

The ACO investment model will test the use of pre-paid shared savings to

a) Lower patient costs
b) Increase administrative fees
c) Enhance provider salaries
d) Boost pharmaceutical sales

Answer 1

The ACO investment model aims to lower patient costs by aligning payment with the value of medical services provided and is part of the ACA's efforts to reduce healthcare expenditures.

Step-by-step explanation:

The ACO investment model will test the use of pre-paid shared savings primarily to lower patient costs. This approach is a part of broader health care reform efforts under the Affordable Care Act (ACA) aimed at controlling increases in healthcare costs. Efforts under the ACA include implementing caps on administrative spending and transitioning to electronic medical records (EMRs) to streamline operations and reduce expenses. Unlike fee-for-service systems where providers earn more by providing more services, ACO models create incentives to improve health outcomes while controlling costs, thereby aligning payment more closely with the value of services provided to patients.