MONTPELIER, Vt. (WCAX) – Vermont is partnering with the federal government and a few other states in a new effort to contain Medicare costs and improve care.
The Centers for Medicare & Medicaid Services earlier this week announced it has accepted Vermont’s application to participate in the States Advancing All-Payer Health Equity Approaches and Development (AHEAD) program.
State officials say the aim is to help bring in more federal Medicare dollars to invest in primary care and preventative medicine to keep people healthy instead of resorting to expensive emergency procedures. They say the program won’t be a silver bullet in bringing down the cost of health care but it’s still a valuable opportunity.
“We’ve learned a lot, we’ve been successful in a lot of ways. This is an opportunity for us to continue to test and evolve and change based on the needs of our communities. It won’t be everything, but I think it will be a really meaningful piece, especially for hospitals and primary care,” said Monica Ogelby with the Vermont Agency of Human Services.
The program is similar to the years-long all-payer model reform efforts the state has been involved in — paying hospitals and providers flat fees instead of charging for each procedure, which many say drives up the cost of care.
Critics say those efforts have not paid off and haven’t kept up with hospital and commercial insurance rates, which are increasing by double digits
The AHEAD model would last for nine years and is slated to begin in 2026.