Vermont Agency of Administration 2014
Green Mountain Care: A Comprehensive Model for Building Vermont’s Universal Health Care System
By: Vermont Agency of Administration
Published: December 30, 2014
Financed by: State of Vermont
Legislation analyzed: Act 48
Download the Report: the report and appendices from the State of Vermont, or from our backup files below.
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Summary
We estimated that GMC would cost $4.3 billion in the first year of the program and $5.2 billion in the fifth year. These cost estimates are based on current health care expenditures in Vermont, trended forward to 2017 and inflated at a rate of four percent per year after that. Importantly, these cost estimates do not include a specific one-time reduction in provider payments to account for potential reduced administrative costs under GMC. We do not believe that such a reduction can be accurately estimated, and instead proposed that the GMCB annually consider efficiency gains in Vermont’s health care system, including administrative cost reductions, in setting actual annual growth rates for GMC. At a growth rate of four percent, GMC would yield savings of $378 Million over the first five years of the program relative to current predicted trends.