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Vermont officials are launching something in the works for years: A new system of payments to health care providers that focuses on overall health, rather than individual medical procedures


MONTPELIER, Vermont — Gov. Peter Shumlin and other senior state officials are going ahead with plans to ask for changes to federal rules in order to create a new system for paying health care providers.

The state is asking for changes to federal Medicaid and Medicare rules to enable it to institute something called an "all-payer model." The aim is to get away from health providers being paid for individual visits and procedures, and instead give them a set budget with the goal of keeping a certain population healthy.

Shumlin and other officials say they think they can stop health care costs from outpacing growth in the general economy. They say set health care budgets make sense at a time when chronic disease treatment represents the bulk of health care.

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