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The Policy and Practice Legacy of the New Jersey Medicaid ACO Demonstration Project
Derek DeLia1, Michael J Yedidia
1MedStar Health Research Institute, Hyattsville, Maryland (Dr DeLia); Department of Plastic and Reconstructive Surgery, Georgetown University School of Medicine, Washington, District of Columbia (Dr DeLia); and Center for State Health Policy, Institute for Health, Health Care Policy, & Aging Research, Rutgers University, New Brunswick, New Jersey (Dr Yedidia).
Abstract:
The New Jersey Medicaid Accountable Care Organization (ACO) Demonstration was created with a unique combination of features regarding ACO geography, involvement of managed care organizations (MCOs), and shared savings parameters. Ultimately, the Demonstration did not lead to a sustainable accountable care financing model and shared savings were deemphasized. Instead, the ACOs evolved into community health coalitions focused on coordinating and enhancing a wide range of activities in partnership with state government, private health systems, community leaders, and MCOs. Currently, the state is developing policy parameters to reposition the ACOs as regional partners to implement state-directed population health initiatives.
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