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Committee reviews Act 167 hospital transformation work; sponsor proposes new planning division at Green Mountain Care Board
Summary
Legislative counsel summarized Act 167 requirements on all-payer models and hospital system transformation. A bill sponsor proposed establishing a planning and evaluation division at the Green Mountain Care Board to pursue savings and a statewide strategic plan for affordability and access.
Jen Carby of the Office of Legislative Council summarized Act 167 of 2022 and subsequent amendments, telling the House Health Care Committee that the law directed development of proposals for a subsequent all-payer model, consideration of value-based and global payments, and a required hospital system transformation engagement process that produced a community report (contracted through Oliver Wyman).
Carby reviewed the major elements of section 1 (AHS-led proposal for a subsequent all-payer model and considerations for total cost of care targets, global payment models, health equity and participation by accountable-care organizations) and section 2 (a data-informed, community-inclusive engagement process to reduce inefficiencies, lower costs and preserve emergency capacity). She said the statute required reports (director of health care reform and the Green Mountain Care Board were to report by Jan. 15, 2023; AHS stakeholder update by March 15, 2023) and noted appropriations to support the work: $900,000 to AHS (FY2023) and $4,100,000 to the Green Mountain Care Board for contracting and consultants.
A bill sponsor who asked to present to the committee proposed creating a division of planning and evaluation at the Green Mountain Care Board to translate Act 167 findings into specific reforms and to enable the board to exercise budget oversight and rate-setting to restrain health spending growth. The sponsor summarized the objective as capturing the savings identified in Act 167 and shifting investments to strengthen community-based care. "A small investment will yield huge benefits to the state of Vermont," the sponsor said, urging the committee to consider resourcing the board for strategic planning and implementation.
Committee members asked whether the proposal aligns with prior board work and how the new division would relate to existing budget-review functions. The sponsor said the division would work closely with the board’s budget oversight and analytic functions and offered to provide a longer version of the proposal and stakeholders list for testimony.
No formal action or vote occurred; members said they expect to request additional written materials and witnesses, including representatives from the Green Mountain Care Board, Agency of Human Services and consultants who produced the engagement report.
