Universal American's zeal for ACOs is fading

Insurer Universal American, the largest operator of Medicare accountable care organizations, has exited three ACOs and may drop more as the company sheds poorly performing or fringe businesses, said executives with the publicly traded insurer.

Robert Waegelein, Universal American's president and chief financial officer, also said the company will not expand its ACO efforts into new markets in January, when the CMS will add the latest round of ACOs to its Shared Savings Program. The program, created under a provision of the Affordable Care Act, creates incentives for participating providers to beat cost and quality targets.

The company is ending its presence “where we don't see the engagement at the level we need to have,” Waegelein said in an interview after the company announced its second-quarter results.

Read the full story via Modern Healthcare.