In a landmark development for federal healthcare policy, the Centers for Medicare and Medicaid Services (CMS) has released data revealing that the soon-to-expire ACO REACH model generated nearly $1 billion in savings for the Medicare program in 2024.

The value-based care pilot, which replaced Medicare’s previous direct contracting arrangement, amassed $2.5 billion in gross savings last year, with more than $988 million directly returning to the Medicare trust fund www.healthcaredive.com . This figure represents a substantial escalation from the $694.6 million saved in 2023 and the mere $70.4 million recorded in the program's inaugural 2021 year www.healthcaredive.com .

However, the financial dispersion reveals a complex landscape. While North Carolina’s Physicians Healthcare Collaborative secured a staggering $183.2 million in net savings, larger entities faced steep losses www.healthcaredive.com . Healthcare behemoth CVS reported a $69.5 million deficit, and risk-bearing platform Vytalize Health absorbed a $99.7 million loss, illustrating the hazardous nature of risk-based arrangements for massive beneficiary pools www.healthcaredive.com .

Rather than renewing ACO REACH, CMS has elected to supersede it with a new framework dubbed ACO LEAD, commencing in 2027 www.healthcaredive.com . This successor model promises refined benchmarks, prospective payments, and an extended duration designed to equalize the playing field for diverse provider types www.healthcaredive.com .

Official Social Media Verification

Leading healthcare policy outlets and industry associations have actively disseminated the CMS data, confirming the financial milestones and the impending transition to the ACO LEAD model.

ACO REACH participants generated nearly $1B in 2024 savings: CMS. The value-based care model continues to show strong results ahead of its transition to the new LEAD model. https://t.co/FierceHealth

— Fierce Healthcare (@FierceHealth) July 13, 2026