Vermont Moves Toward Single-Payer Health Insurance

Vermont recently passed legislation establishing something close to a universal, single-payer health insurance system, with providers and hospitals billing the state for their services. The new system, “Green Mountain Care,” will be phased in alongside federal health care reform changes. All state residents are eligible for coverage, which proponents argue will be cheaper than the current network of insurers. A five-member board appointed by the governor will determine provider payment rates, benefits, and other system components. The system relies heavily on federal Medicaid waivers that reallocate funds and other unspecified funding sources. Eventually, the system will replace fee-for-service payment with a system that pays providers a certain amount of money to care for a specific population, providing incentives for preventive care.