Maryland Gov. Larry Hogan, R, signed a contract with CMS to remove federal restrictions concerning the state's all-payer healthcare plan, WTOP reports.
Here's what you should know:
1. Maryland will no longer have federal restrictions on its all-payer plan. Instead, the state will be weighed against a series of benchmarks centered on improving quality, increasing access to care and reducing costs.
2. The dropped restrictions will save the state $1 billion by 2023.
3. Maryland has had its all-payer model in place since 1970. It is the only state to have such a policy.
4. CMS Administrator Seema Verma said the model holds the state "fully at risk for total Medicare costs for all residents." She added, "The state and CMS have agreed on the goals, and now our job is to get out of the way and give the state the maximum flexibility to achieve success."
5. The state believes if it is successful, the model can be implemented across the U.S. to decrease Medicare's financial strain.