An Early Look at Vermont’s Value-Based, Multi-Payer “Next Gen” Model, Designed to Lower Costs and Improve Population Health

NASHP June 12, 2018
Robin Lunge, JD, MHCDS

Introduction
In October 2016, Vermont signed an agreement with the Centers for Medicare and Medicaid Innovation (CMMI) to transform its largely fee-for-service payment system to a prospective, value-based, multi-payer reimbursement model with the goals to:

• Reduce health care spending growth to align with state economic growth;
• Meet population health priorities identified by the State of Vermont; and
• Create an integrated delivery system.

The agreement outlines steps to achieve the Institute for Healthcare Improvement’s Triple Aim by providing an all-payer health care spending target of 3.5 percent from 2018 through 2022 and a quality framework designed to measure whether the state is increasing access to primary care, reducing deaths caused by suicide and drug overdose, and reducing the...

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