About the ACE Demonstration
The Acute Care Episode (ACE) demonstration is a new program that tests how hospital care can be improved by encouraging doctors, hospitals and patients to work together more closely. It is a test program designed by Medicare beginning June 2009 and lasting three years. The results of this initiative will be used to improve the way health care is delivered across our country.
This demonstration provides an opportunity for Medicare to share savings achieved through the demonstration with beneficiaries who, based on quality and cost, choose to receive care from participating demonstration providers. The Centers for Medicare and Medicaid (CMS) will share up to 50% of the Medicare savings in the form of payments to beneficiaries, not to exceed their Part B premium amount.
The exact amount of the shared savings payment will vary by site and procedure. Medicare will send the shared savings payment directly to qualified beneficiaries approximately 90 days after they are discharged from the hospital. (Those Medicare beneficiaries who are receiving Medicaid benefits are not eligible to receive shared savings payments.)
Incentive payments may be taxable and beneficiaries are responsible for paying any Federal, State or other taxes owed on the shared savings payments.