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Vermont Moves To All-Payer System

01 Nov

Vermont Moves To All-Payer System

The state of Vermont has announced it received preliminary approval for its planned “all-payer” health care system. Governor Peter Shumlin has pushed for this new model as a means of addressing the rising costs of healthcare.

The all-payer model would hold healthcare costs at an increase of 3.5 percent over ten years, purportedly saving Vermonters approximately $10 billion.

Under the all-payer model, would see the various payers providing capitalized payments to healthcare providers. This is in contrast to the Vermont’s failed “single-payer” model from 2014 which focused on a move away from private insurance. This new system would allow private insurances to participate and instead effect the way in which healthcare providers are paid.

Shumlin has described the system as a monthly payment to doctors that would be based on the “health” of their patients. Without a doubt, this will put a stronger focus on readmissions and preventative care. The system is not without its criticisms, however. Hosptials say that the program would pay less, forcing them to increase cost on comerical insurance customers in order to to make up the difference.

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Via Healthcare Dive

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