Under ACO models, what condition must be met for shared savings to be distributed?

• A. Cost savings alone trigger distribution.
• B. Quality targets must be met relative to a benchmark.
• C. Only patient satisfaction scores matter.
• D. Distribution occurs only if penalties are below a threshold.

Answer: (B)

Under ACO models, sharing savings depends on both cost performance and quality performance. The key idea is that money is earned only when you meet predefined quality targets relative to a benchmark. This ensures that reduced costs reflect genuine improvements in care quality, not just lower spending. If those quality targets aren’t met, you don’t receive a share of the savings, even if costs came in under the benchmark. The other options miss this core guardrail: cutting costs alone isn’t enough, patient satisfaction is only one facet of quality, and penalties are related to risk of losses rather than the condition for distributing savings.