Vermont Governor Peter Shumlin announced the state wants to transform its health care system under the All Payer Model.
According to the governor’s office, the All Payer Model rewards fee-for-service and quality-based care that focuses on keeping Vermonters healthy.
The model changes three main payers of healthcare in Vermont including Medicaid, Medicare, and private insurance, to pay doctors and hospitals differently than they do today.
The governor’s office says instead of paying for each test or procedure, doctors and hospitals will receive a set of payment for each patient attributed to them.
“For Vermonters, our innovation will mean not only a health care system that is more affordable but one that better meets their needs,” Gov. Shumlin said. “We will restore the family physician’s rightful place in Vermonters lives, ensuring they have someone to turn to when they get sick and a partner in keeping them healthy.”
Vermonters will still be able to see the doctor or healthcare provider of their choice. Vermonters on Medicaid and Medicare will not see any changes to their benefits.
The state is currently finalizing negotiations of the terms of the All Payer Model with the federal government. If approved, Vermont will become the first state to adopt this model.
Governor Shumlin made the announcement at a press conference in Montpelier on Monday. He was joined by Green Mountain Care Board Chair Al Gobeille and senior health care advisors.