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Alternative Payment Model 2 (APM 2)

With the launch of Phase 3 of the Accountable Care Collaborative, APM 2 will undergo a shift to better align with the Primary Care Payment Structure. This webpage outlines current operations for APM 2. More information about updates to the program will be added as it becomes available

Alternative Payment Model 2 (APM 2) Overview

Participating practices can choose to receive some or all of their revenue as Per Member Per Month payments, to provide stable revenue and allow for increased investment in care improvement. Participating providers are also eligible to share in the savings that result from improved chronic care management by meeting quality thresholds. This model was designed with input from stakeholders across Colorado to prioritize excellent primary care for members with chronic conditions, improving member outcomes and reducing health disparities. 

APM 2 & ACC Phase 3 Single Comprehensive Primary Care Payment Structure Informational Webinars

The Department held the first informational webinar in November 2024 to review the updated Primary Care Payment Structure in ACC Phase III

April 23, 2025

April 9, 2025

March 23, 2025

November 19, 2024

Stakeholder Engagement Opportunities

Stakeholder collaboration is critical to refining the APM 2 program. An APM 2 Design Review Team (DRT) was held in 2024. Materials from APM 2 DRT work sessions are available on this webpage.

July 24, 2024

July 10, 2024

June 26, 2024

June 12, 2024

May 16, 2024

April 24, 2024

March 27, 2024

March 13, 2024

February 28, 2024

February 6,2024

Who is eligible to participate now?

All current  APM 1 enrolled practices are eligible. To learn more about APM 1 eligibility visit the program webpage. 

Eligiblity will change starting in Program Year 2026 with the sunset of APM 1. Please see the APM webpage for more details.

Program Resources

APM 2 for Federally Qualified Health Centers (FQHCs)

Federally Qualified Health Centers are able to sign up for their own track of APM 2. A few key differences of APM 2 FQHC:

  • The Per Member Per Month payments represent 100% of medical revenue for FQHCs.  
  • FQHCs may enroll in the Chronic Condition Incentive Payment separately from the PMPM. The episodes of care are the same for both FQHCs and non-FQHCs.
  • Because enrollment occurs at the entity level in this track, FQHCs do not need to meet the threshold of 500 or more attributed Health First Colorado ACC enrollees.

For additional detail on the Federally Qualified Health Center model, please see the Department’s FQHC webpage  or contact the Payment Reform Division at  HCPF_primarycarepaymentreform@state.co.us

Prospective Payment in APM 2

Providers may elect to receive part or all of their reimbursement for qualifying services as a prospective payment, instead of traditional fee-for-service revenue. This is intended to provide additional stability and consistency in service payment reimbursement.

Starting July 1, 2025, there will no longer be a 16% increase to prospective payment rates for participation in this program. That funding will be repurposed into Access Stabilization Payments. For more information on access stabilization payments, visit the ACC webpage.

The prospective payment for model design will be updated in Program Year 2026. There will be updates to eligibility criteria, rate setting methodology, and reconciliation. More information will be posted as it becomes available. 

Chronic Condition Episodes included in APM 2

  • Arrhythmia/ Heart block - Low
  • Asthma
  • Crohn’s Disease
  • Chronic Obstructive Pulmonary Disease
  • Coronary Artery Disease
  • Diabetes
  • Heart Failure
  • Hypertension
  • Gastro-Esophageal Reflux Disease
  • Low back pain
  • Osteoarthritis
  • Ulcerative Colitis

The shared savings incentive payment for chronic conditions will be updated in Program Year 2026. There will be updates to eligibility criteria, included conditions, and payment eligibility. More information will be posted as it becomes available. 

Quality Measures

The quality measures for APM 2 are the same as those used for APM 1. 

The quality model will change in Program Year 2026 with the sunset of APM 1. More information on how the new Primary Care Payment Structure quality model will interact with these components of APM 2 will be available in the coming months. 

Contact Information

Email HCPF_primarycarepaymentreform@state.co.us for more information about the program.