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Keep Wall Street Out of Traditional Medicare No to ACO REACH!

The Trump administration created a pilot program to privatize traditional Medicare – the Direct Contracting program. The Biden administration has rebranded this privatization scheme as ACO REACH.

Under ACO REACH, the Center for Medicare Services (CMS) contracts with private entities to manage Medicare services. They can be hospitals and clinics, but also for-profit investors like private equity firms, insurance companies, or corporate health care businesses.  ACO REACH entities are paid an individualized fee to manage health care services for each Medicare beneficiary based on the health condition of the beneficiary. By 2028 annual Medicare spending is estimated to be $1.6 trillion. For-profit entities are interested in managing Medicare services to get their hands on this money.

Why is this bad?

ACO REACH would allow outside entities to insert themselves between Medicare beneficiaries and our health care providers.  ACO REACH would allow for-profit entities to draw down the Medicare Trust Fund for their private profits.  ACO REACH would open the door to all sorts of profit-taking practices, including weakening the delivery of Medicare services.

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