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New Jersey Medicaid Accountable Care Organization (ACO)
Demonstration Project

The New Jersey Medicaid Accountable Care Organization (ACO) Demonstration project, enacted in 2011 (NJ P.L. 2011, c.114), creates a mechanism for provider coalitions to share in Medicaid savings they generate through care improvement initiatives in designated geographic areas with at least 5,000 beneficiaries. Regulations (45 NJR 5(1)) were finalized in May 2014 and the Demonstration began in July 2015 with three certified ACOs (Camden Coalition of Health Care Providers, Healthy Greater Newark ACO, and Trenton Health Team). Additional information about the Demonstration and its implementation can be found at the New Jersey Department of Human Services website.

The Medicaid ACO authorizing legislation calls on the Center for State Health Policy to support the implementation and evaluation of the Demonstration. To fulfill this mandate, the Center conducts in-depth analysis and program evaluation drawing on stakeholder interviews and analysis of Medicaid claims and encounter data and other sources.

In collaboration with the NJ Affiliated Accountable Care Organizations, CSHP presented a Webinar on the Medicaid ACO savings methodology. Download the Webinar slides and listen to the accompanying audio to view this presentation.

With support provided by a grant from The Nicholson Foundation, the Center examined opportunities provided by the Medicaid ACO Demonstration Program to improve quality of care and lower healthcare costs. Focusing on 13 low income New Jersey communities – including Camden, Trenton and Newark – CSHP analysts identified potentially avoidable hospital utilization and costs that could be reduced through better care. Our findings are shared below in a series of publications.