Section 425.200 - Participation agreement with CMS(a)General. In order to participate in the Shared Savings Program, an ACO must enter into a participation agreement with CMS for a period of not less than the number of years specified in this section.(b)Agreement period.(1)For 2012. For applications that are approved to participate in the Shared Savings Program for 2012, the start date for the participation agreement will be one of the following:(i) April 1, 2012 (term of the participation agreement is 3 years and 9 months).(ii) July 1, 2012 (term of the participation agreement is 3 years and 6 months).(2)For 2013 and through 2016.(i) The start date is January 1 of that year; and(ii) The term of the participation agreement is 3 years unless all of the following conditions are met to extend the participation agreement by 6 months: (A) The ACO entered an agreement period starting on January 1, 2016.(B) The ACO elects to extend its agreement period until June 30, 2019. (1) The ACO's election to extend its agreement period is made in the form and manner and according to the timeframe established by CMS; and(2) An ACO executive who has the authority to legally bind the ACO must certify the election described in paragraph (b)(2)(ii)(B) of this section.(3)For 2017 and 2018.(i) The start date is January 1 of that year; and(ii) The term of the participation agreement is 3 years, except as follows: (A) For an ACO whose first agreement period in Track 1 began in 2014 or 2015, in which case the term of the ACO's initial agreement period under Track 1 (as described under § 425.604 ) may be extended, at the ACO's option, for an additional year for a total of 4 performance years if the conditions specified in paragraph (e) of this section are met.(B) For an ACO whose agreement period started on January 1, 2018, the term of the participation agreement is extended by 12 months if both of the following conditions are met: (1) The ACO elects to extend the participation agreement for a fourth performance year until December 31, 2021.(2) The ACO's election to extend its agreement period is made in the form and manner and by a deadline established by CMS.(4)For 2019.(i) The start date is January 1, 2019, and the term of the participation agreement is 3 years for ACOs whose first agreement period began in 2015 and who deferred renewal of their participation agreement under paragraph (e) of this section; or(ii) The start date is July 1, 2019, and the term of the participation agreement is 5 years and 6 months.(5)For 2020 and subsequent years.(i) The start date is January 1 of that year; and(ii) The term of the participation agreement is 5 years.(c)Performance year. The ACO's performance year under the participation agreement is the 12 month period beginning on January 1 of each year during the term of the participation agreement unless otherwise noted in its participation agreement, and except as follows: (1) For an ACO with a start date of April 1, 2012, or July 1, 2012, the ACO's first performance year is defined as 21 months or 18 months, respectively.(2) For an ACO that entered a first or second agreement period with a start date of January 1, 2016, and that elects to extend its agreement period by a 6-month period under paragraph (b)(2)(ii)(B) of this section, the ACO's fourth performance year is the 6-month period between January 1, 2019, and June 30, 2019.(3) For an ACO that entered an agreement period with a start date of July 1, 2019, the ACO's first performance year of the agreement period is defined as the 6-month period between July 1, 2019, and December 31, 2019.(d)Submission of measures. For each performance year of the agreement period, ACOs must submit measures in the form and manner required by CMS according to § 425.500(c) or § 425.510 , as applicable, and as applicable according to §§ 425.608 and 425.609 .(e)Optional fourth year.(1) To qualify for a fourth performance year as described in paragraph (b)(3)(ii) of this section, the ACO must meet all of the following conditions:(i) The ACO's first agreement period in the Shared Savings Program under Track 1 began in 2014 or 2015.(ii) Is currently participating in its first agreement period under Track 1.(iii) Has requested renewal of its participation agreement in accordance with § 425.224 .(iv) Has selected a two-sided model (as described under § 425.606 or § 425.610 of this part) in its renewal request.(v) Has requested an extension of its current agreement period and a 1-year deferral of the start of its second agreement period in a form and manner specified by CMS.(vi) CMS approves the ACO's renewal, extension, and deferral requests.(2) An ACO that is approved for renewal, extension, and deferral that terminates its participation agreement before the start of the first performance year of the second agreement period is- (i) Considered to have terminated its participation agreement for the second agreement period under § 425.220 ; and(ii) Not eligible to participate in the Shared Savings Program again until after the date on which the term of that second agreement period would have expired if the ACO had not terminated its participation, consistent with § 425.222 .76 FR 67973, Nov. 2, 2011, as amended at 80 FR 32837, June 9, 2015; 81 FR 38013, June 10, 2016; 83 FR 60092, Nov. 23, 2018; 83 FR 68063, Dec. 31, 2018; 85 FR 27625, May 8, 2020; 85 FR 85038, Dec. 28, 2020 81 FR 38013, 6/10/2016; 83 FR 60092, 11/23/2018; 83 FR 68063, 12/31/2018; 85 FR 27625, 5/8/2020; 85 FR 85038, 1/1/2021