Benefits Perspectives: Introduction to shared savings arrangements and ACOs

While shared savings arrangements may offer plan sponsors a new opportunity to provide both high quality and cost efficient care to plan participants, such arrangements also introduce a number of new analytical and contractual challenges for human resource and finance professionals. These agreements are likely to become much more common in the next five years in the commercial health insurance market. Plan sponsors should be prepared to adapt to changes in how shared savings agreements are constructed as the market matures.