Collaboratives and Innovative Partnerships
Vermont’s All-Payer Accountable Care Organization Model
Initiative Description: The Vermont All-Payer Accountable Care Organization (ACO) Model (VTAPM) began on January 1, 2017 and is scheduled to end on December 31, 2024. It is a culmination of Vermont’s commitment to health care transformation, building from Vermont’s Global Commitment to Health Section 1115 waiver, the Blueprint for Health, and a multi-payer ACO Shared Savings Program (SSP) pilot under Vermont’s State Innovation Models (SIM) Testing Grant. Medicare, Medicaid, BlueCross BlueShield of Vermont (BCBSVT), MVP Health Care, and the State Employees’ Health Care Plan — a self-insured plan administered by BCBSVT — participate in the model, representing the majority of covered lives in the state. The Model is administered by OneCare Vermont, which coordinates all funding from all VTAPM payment mechanisms — all-inclusive population-based payment, fixed prospective payment, and traditional fee-for-service (FFS). The Model aims to use this ACO structure to reduce statewide spending and improve population health outcomes.
Strategic and Tactical Uses: The VTAPM has been linked to reductions in Medicare spending, decreases in acute hospital and specialty visits, and efforts to improve care coordination and strengthen primary care. Despite these successes, the Model had mixed success related to payment reform, with FFS as the primary funding mechanism by participating commercial plans, and mixed quality measure alignment, with only 7 of the 18 OneCare measures in common among participating health plans. Other states can look to the VTAPM model to understand how decades of work toward health care payment reform efforts can be used to develop a statewide model with successful cost and quality outcomes. Lessons learned from the evaluation report — including the need to align financial incentives and attribution, and the importance of goal setting for aligned payment mechanisms (see additional information below) — should also be reviewed for states looking to leverage findings from Vermont.
Multi-payer Alignment Foundational Element: Aligning Key Payment Model Components
Timeframe: Active
For additional information, please visit https://www.cms.gov/priorities/innovation/data-and-reports/2023/vtapm-3rd-eval-full-report
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