Vermont set an ambitious goal for its healthcare plan — cover 70 percent of its state residents under pay-for-performance payment systems, according to The Pew Charitable Trusts.
Here are seven things to know about the plan:
1. Vermont will phase the plan throughout the state through 2022.
2. If Vermont reaps success, other states are likely to adopt similar plans with the ACA pushing health systems spanning the nation to move away from the fee-for-service model.
3. Paul Ginsburg, PhD, a professor of health policy at Los Angeles-based University of Southern California, told Pew Charitable Trusts, and "I don't think a program like this is in danger. There has long been support on both sides of the aisle for payment reform that moves us in the direction of value-based financing."
4. Former Governor Pete Shumlin implemented an all-payer model plan in the state, which Gov. Phil Scott has maintained throughout his tenure as governor.
5. Providers can select from one of two accountable care organizations, which both agreed to cap spending growth to nearly 3.5 percent annually for the five years the plan is in action. ACOs that fall under budget will get a 3 percent bonus. ACOs that miss their targets will pay a penalty up to three percent.
6. Every provider participating in the ACOs will utilize the same EHR system, which will facilitate better communication between facilities.
7. Many Vermont Medical Society members embrace the model. However, there are those with hesitations. Robert Emmons, MD, a psychiatrist, referred to the ACOs as "old wine in new bottles."