Last week, CMS announced a redesigned Accountable Care Organization (ACO) model to better reflect the Biden Administration’s goal of advancing health equity. CMS will replace the current Global and Professional Direct Contracting model with the new Realizing Equity, Access, and Community Health (REACH) model, which will launch in January 2023. The new model will require that all participating organizations develop a health equity plan to identify underserved communities and implement initiatives to reduce health disparities within their beneficiary populations. This model gives an indication of how CMS will incorporate health equity into value-based care, making hospitals more accountable for addressing health disparities.