Reps. Tenney and Schneider Introduce Legislation to Establish Permanent Full Risk ACO Program in Medicare

Washington, DC - Congresswoman Claudia Tenney (NY-24), today, alongside Rep. Brad Schneider (IL-10), introduced legislation to establish a permanent full risk Accountable Care Organization (ACO) program within Traditional Medicare, expanding access to coordinated, high-quality care while reducing costs for patients and taxpayers.

Accountable Care Organizations have demonstrated success in improving patient outcomes and lowering costs by coordinating care across providers and focusing on prevention, chronic disease management, and whole-person care. Currently, these models largely operate through temporary pilot programs, limiting long-term participation and investment. As of 2026, more than 14 million Medicare beneficiaries receive care through ACOs, which have generated billions in savings for the Medicare program while improving quality of care. This legislation builds on that success by creating a permanent pathway for providers to participate in full risk arrangements, ensuring long-term stability and expanded access to innovative care models.

The bill establishes a new Full Risk ACO Program under Medicare, allowing providers to take on full accountability for both the cost and quality of care while offering greater flexibility beyond traditional fee-for-service models. It creates two tracks: a Standard Full Risk ACO for broader Medicare populations and a Complex Care Full Risk ACO designed for high-needs patients with multiple chronic conditions, ensuring care is better tailored to patient needs while improving outcomes and reducing unnecessary spending.

"Medicare patients deserve a system that delivers better outcomes, not a one-size-fits-all policy," said Congresswoman Claudia Tenney. "Accountable Care Organizations have already proven they can improve care and lower costs. But today, these models remain stuck in temporary pilot programs instead of permanent availability. This bill changes that. It establishes a full risk ACO program that empowers providers to deliver coordinated, patient-centered care while protecting taxpayers and strengthening Medicare for future generations."

"For over a decade, Accountable Care Organizations have excelled at coordinating patient-centered care, generating savings, and improving health outcomes," said Congressman Brad Schneider. "Creating a 'full risk' ACO option for organizations would alleviate financial burdens and provide more stable payment models for patients who rely on consistent, high-quality care. By expanding these models, we can empower providers to reduce unnecessary costs and ensure patients receive expansive, coordinated care."

"Accountable care is no longer an experiment and is a proven model for improving quality and addressing Medicare's affordability challenges," said Mara McDermott, Chief Executive Officer of Accountable for Health. "We are grateful to Reps. Tenney and Schneider for their bipartisan leadership in strengthening traditional Medicare and ensuring accountable care remains a permanent option for providers and beneficiaries alike."

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