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All-Payer ACO Set to Begin in Vermont

News  |  By HealthLeaders Media News  
   October 28, 2016

The $9.5M, six-year initiative aims to get 90% of Vermont Medicare beneficiaries in an ACO by 2022.

In an effort to broaden accountable care organization (ACO) participation throughout Vermont, the state has teamed up with the Centers for Medicare & Medicaid Services (CMS) to develop an All-Payer ACO Model, CMS announced this week.

Under the program, set to begin January 1, major payers throughout the state—Medicare, Medicaid, and commercial healthcare payers—will incentivize healthcare value and quality under the same payment structure for the majority of providers throughout the state's care delivery system.

In particular, Vermont has prioritized outcomes surrounding substance use disorder, suicides, chronic conditions, and access to care.

The voluntary program will provide Vermont clinicians startup funding of $9.5 million to help them bolster care coordination and collaboration. Meanwhile, CMS has approved a five-year extension of Vermont's section 1115(a) Medicaid demonstration, enabling Medicaid to be a full partner in the new ACO.


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“This model is historic in terms of its scope, aiming to include almost all providers and people throughout the state in an all-payer ACO model to drive improved quality, better care coordination, healthier people, and smarter spending,” said Patrick Conway, MD, CMS principal deputy administrator and chief medical officer.

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