House Advances Bipartisan Legislation to Ease Quality Reporting Burden for Medicare ACOs

Key Takeaways

• The US House of Representatives (House) unanimously passed H.R. 5347, a bipartisan bill that would extend flexibility in Medicare Shared Savings Program quality reporting through 2029 while Accountable Care Organizations (ACOs) transition to digital quality measures.
• The legislation would establish a Centers for Medicare & Medicaid Services (CMS) pilot program to test digital quality measure reporting, aiming to reduce administrative burden and improve reporting consistency for participating ACOs.
• If enacted, the bill could benefit smaller, rural, and safety-net providers by providing additional time to modernize electronic quality reporting without changing existing Medicare quality reporting requirements.

The House has unanimously approved H.R. 5347, the Health Care Efficiency Through Flexibility Act, a bipartisan bill intended to provide ACOs with greater stability as they transition to digital quality measurement reporting under Medicare. The legislation was approved as part of a broader package of bipartisan health care bills advanced by the House Ways and Means Committee.¹

Sponsored by House Ways and Means Health Subcommittee Chairman Vern Buchanan (R, Florida) and Representative Jimmy Panetta (D, California), the bill focuses on reducing administrative complexity associated with quality reporting in the Medicare Shared Savings Program (MSSP) while supporting CMS' long-term shift toward digital quality measures (dQMs).^1,2

Why the Legislation Was Introduced

ACOs participating in the MSSP are required to submit quality measure data to CMS, a process that stakeholders have described as both resource-intensive and costly. According to background information accompanying the legislation, some health systems have reported spending millions of dollars annually on quality reporting, while ACOs often must aggregate data from numerous electronic health record (EHR) platforms with varying capabilities.³

The legislation is designed to address uncertainty surrounding CMS' transition from traditional quality reporting methods to digital quality measures. Supporters contend that the lack of a stable implementation timeline has created operational challenges, particularly for smaller physician practices, rural providers, federally qualified health centers, and other organizations with more limited health information technology resources.³

What H.R. 5347 Would Do

If enacted, the Health Care Efficiency Through Flexibility Act would:

• Maintain flexibility in Medicare quality reporting methods through 2029, allowing ACOs additional time to transition to digital quality measures.³
• Establish a digital quality measure pilot program that would enable participating ACOs to test reporting approaches and identify best practices before broader implementation.³

The legislation does not eliminate quality reporting requirements. Instead, it extends reporting flexibility while CMS and participating organizations continue developing digital reporting infrastructure.^1-4

Potential Implications for Managed Care

Although the bill specifically targets Medicare ACOs participating in the MSSP, its approach reflects broader trends across value-based care initiatives that increasingly rely on electronic clinical quality data.⁴

According to the legislation's supporting materials:

• More than 511 ACOs currently participate in the MSSP, representing nearly 688 000 providers serving more than 12.6 million Traditional Medicare beneficiaries.³
• More than 12 500 participating providers practice in federally qualified health centers, rural health clinics, or critical access hospitals.³
• The MSSP has generated more than $12 billion in Medicare savings over its 14-year history.³

Supporters also note that digital quality measures have the potential to substantially reduce reporting costs compared with traditional reporting methods, although widespread adoption depends on consistent implementation standards and EHR readiness.³

What Comes Next

Following unanimous House approval, H.R. 5347 now moves to the Senate for consideration. If enacted, the legislation would extend reporting flexibility through 2029 while creating a pilot program intended to help CMS and participating ACOs transition toward broader use of digital quality measures.¹

References

1. House Committee on Ways and Means. Bipartisan Ways & Means legislation to improve high-quality health care delivery approved by House. Published June 29, 2026. Accessed July 1, 2026. https://waysandmeans.house.gov/2026/06/29/bipartisan-ways-means-legislation-to-improve-high-quality-health-care-delivery-approved-by-house/
2. Buchanan bill to support health care providers passes House in unanimous vote. Office of Congressman Vern Buchanan. Published June 29, 2026. Accessed July 1, 2026. https://buchanan.house.gov/2026/06/29/buchanan-bill-to-support-health-care-providers-passes-house-in-unanimous-vote/
3. United States House Committee on Ways and Means. H.R. 5347, Health Care Efficiency Through Flexibility Act Fact Sheet. June 2026. Accessed July 1, 2026.
4. Frieden J. House Passes Bill to Ease Quality Reporting Requirements for Medicare ACOs. MedPage Today. Published June 30, 2026. Accessed July 1, 2026. https://www.medpagetoday.com/practicemanagement/reimbursement/121998