March 16, 2026

Re: Appreciation for Advanced APM Incentive Extension and Continued Medicare Payment Reform

Dear Chairman Crapo, Chairman Guthrie, Chairman Smith, Ranking Member Wyden, Ranking Member Neal, and Ranking Member Pallone:

The undersigned organizations thank you for your leadership in advancing value-based care in Medicare by including an extension of the Advanced Alternative Payment Model (APM) incentive payments in the Consolidated Appropriations Act of 2026. This action sends an important signal to physicians, hospitals, and accountable care organizations (ACOs) that Congress remains committed to supporting the transition to APMs and providing stability as clinicians continue to invest in models that improve quality of care and lower costs for Medicare beneficiaries.

APMs lower health care costs and improve outcomes by incentivizing proactive population health management, chronic disease management, and preventive care across the continuum. These models have demonstrated meaningful success in Medicare. ACOs in Medicare’s Shared Savings Program, the agency’s largest APM, lowered Medicare spending by more than $6 billion in 2024 and outperformed non-value-based models on quality and preventive care measures.1 These and other APMs have generated billions of dollars in savings over the last decade and produced spillover effects that improve care and reduce costs across the health care system.

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