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The second evaluation report on Vermont’s All-Payer ACO Model (VTAPM) Agreement found that although the pandemic and a cyberattack on the University of Vermont Health System posed unique challenges in 2020, the Medicare ACO initiative continued to reduce spending and utilization in payment year 3 relative to a comparison group. The initiative also continued to see progress toward population health improvement goals.
The ACO model is a five-year (2018-2022) arrangement between Vermont and the Center for Medicare & Medicaid Innovation (CMMI) that allows Medicare to join Medicaid and commercial insurers to pay differently for healthcare. The goal is to test whether scaling an ACO model across all major payers in the state would incentivize broad care delivery transformation and ultimately reduce statewide spending and improve population health outcomes.