Payment Reform Unit

What We Do

The Payment Reform Unit seeks to transition Vermont Medicaid’s health care revenue model from Fee-for-Service payments to value-based payments with the goal of providing better, more efficient, coordinated care for Vermonters. In support of this goal, the Payment Reform Unit partners with internal and external stakeholders in taking incremental steps toward the integrated healthcare system envisioned by the Vermont All-Payer Accountable Care Organization Model agreement with the Centers for Medicare and Medicaid Services. The Payment Reform Unit also works with providers and provider organizations in testing models, and ensures the models encourage higher quality of care and are supported by robust monitoring and evaluation plans.

Who We Serve

The Payment Reform Unit is available as a resource to DVHA and to other departments within the Agency of Human Services in the consideration of potential payment reform options. The unit is also responsible for the implementation and oversight of the Vermont Medicaid Next Generation (VMNG) Accountable Care Organization (ACO) program, a financial model designed to support and empower the clinical and operational capabilities of the ACO provider network in support of the Triple Aim of better care, better health and lower costs.

How We Impact

By designing and testing new payment models both for DVHA and other departments within the Agency of Human Services, the Payment Reform unit plays a crucial role in support of DVHA’s goal of transitioning to more value-based payment structures which in turn supports Vermont’s overall health reform efforts. All models being developed ultimately support the Triple Aim in healthcare, which will ensure better care, better health, and lower costs for Vermonters.

Action Plan

SFY22 priorities are:

  • To continue to oversee the implementation, evaluation, and evolution of the Vermont Medicaid Next Generation (VMNG) program, including successful negotiation of 2022 VMNG contract and planning for the next stage of the Vermont All-Payer ACO Model Agreement with CMS.
  • To continue to lead planning, design, implementation, evaluation and evolution of existing and new payment reform initiatives, with particular focus on implementation of High-Tech Nursing payment model, forward progress on the Developmental Disabilities Services payment model, evolution of the Adult and Children’s Mental Health payment reform initiative, and implementation of performance frameworks across multiple initiatives.
  • To provide support as needed for Vermont’s evolving 1115 Global Commitment Waiver, and to collaborate with the Director of Health Care Reform and the Green Mountain Care Board on planning and design of next iteration of Vermont’s All-Payer ACO Model Agreement.


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