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Healthcare Committee

What are DCEs or ACO REACH?
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The retail behemoth has acquired One Medical, which is in the Medicare privatization business.

Amazon, the $1.25 trillion company founded and led by Washington Post owner Jeff Bezos, has announced that it is acquiring One Medical, a private equity-backed primary care provider that generates over half of its revenue from Medicare.

Linda S. Mahan

LWV Larimer County, CO

Here are background articles and FAQs from several organizations that define Direct Contracting Entities (DCEs) and the newer version of them called ACO- REACH.

In this program people are automatically enrolled into DCEs without their understanding or consent, and once enrolled, must change primary care providers to opt out. Virtually any type of company can apply to be a DCE, including those owned by commercial insurers, private equity investors, and for-profit dialysis centers. This middleman between CMS and the provider pays the provider and can take a portion of the payment.

DCEs further the privatization of Medicare which began with Medicare Advantage plans.

This April 2022 NYT article highlighted problems with Medicare Advantage

1. Social Security Works FAQ on DCEs

2. How “DCEs” Jeopardize Care, Drive Up Costs, and Turn Medicare over to Corporations

Protect Medicare website (part of PNHP)

3. Healthcare Justice Monitor article "REACH Won't Fix the Equity Harms of Value-Based Care.

Linda S. Mahan

LWV Larimer County, CO

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