An Advanced Payment Model is an initiative developed by the CMS Center for Medicare & Medicaid Innovation for ACOs already participating in the MSSP. It is targeted primarily at physician-owned and rural ACOs that might not have the capital to effectively participate in the MSSP. Note: The Advanced Payment Model ACO was not set forth under the 2010 ACA, but rather serves as a testing initiative for future models of ACO payment systems.
The Advance Payment Model offers ACOs advance payments that will be repaid by the ACO from future shared savings that are compared to a benchmark based off of estimates of what total expenditures for Medicare fee-for-service Parts A and B would have been without the ACO structure. The goal with the Advanced Payment Model is to increase participation in the MSSP by providing incentives up front.