This interesting issue brief from the American Academy of Actuaries examines accountable care organizations from an actuarial perspective. The issue brief highlights issues of data sources, patient assignment or attribution, risk adjustment, risk-based capital requirements, and financial and utilization targets for shared savings and other payment models. The issue brief also notes the potential impact of ACOs on the health care costs and prices in an evolving health care market with a mix of different payment mechanisms and incentives. The American Academy of Actuaries “sets the qualification, practice, and professionalism standards” for its 17,000 members and has a Health Care Quality Work Group.
Ignatius Bau 