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A Better Choice for ACOs Taking Downside Risk

If you are an ACO and need to securitize your downside risk, here are six reasons why a Surety Bond is a better choice than a Letter of Credit (LOC): Credit capacity: An LOC ties up the company’s credit capacity, thus reducing financial flexibility. Surety bonds are not credited against a company’s bank line. Covenants: Banks may place restrictive covenants on the client in return for extending a bank line of credit, or they may … read more

ACO Repayment Mechanisms – Surety Bonds as an Alternative to Letters Of Credit

Track 2, Track 3 and NextGen ACOs have to demonstrate that they would be able to repay shared losses incurred at any time within the agreement period, and for a sufficient period of time following the end of each agreement period (the “tail period”), to permit CMS to calculate the amount of any shared losses that may be owed by the ACO and to collect this amount from the ACO. An ACO’s repayment mechanism must be … read more

ACO Repayment Mechanisms – Types of Surety Bonds

Certain Medicare Shared Savings Program (Shared Savings Program) Accountable Care Organizations (ACOs) must establish a repayment mechanism to assure CMS that they can repay losses for which they may be liable upon reconciliation for each performance year of an agreement period under which they accept performance-based risk. To be eligible to participate in a two-sided shared savings / losses model (Track 2, Track 3 and NextGen), an ACO must demonstrate that it has established an … read more

ACO Reinsurance Options

Because of the shortage of commercially available aggregate provider stop-loss insurance, Re-Solutions and Dubraski & Associates are pleased to announce the development of an ACO Aggregate Insurance Facility that broadens the options in this space. read more

ACO Collateralization – Surety Bonds

Surety bonds are an accepted form of collateral if you are an ACO taking downside risk and need to provide proof of collateralization to CMS. Surety bonds offer benefits such as low cash outlay and no collateral for financially sound organizations. Call Tracy Hoffman today for a no-obligation quote at 860.927.0995 or contact us here. read more