Earlier today, CMS and the state of Maryland announced a new initiative to modernize Maryland’s all payer rate setting system for hospital services designed to improve patient health and reduce costs. The initiative will replace Maryland’s 36 year old Medicare waiver, allowing the state to adopt the new policies that reduce per capita hospital expenditures and improve health outcomes. With this initiative, Medicare will save at least $330 million over the next five years.
Maryland has had the nation’s only all payer hospital rate regulation system; the new model will allow the state to implement its all payer system and will completely change the state’s health care delivery system. New goals include reducing Maryland hospitals’ 30 day hospital readmissions rate and hospital acquired conditions rate. The state will also limit all payer annual per capita hospital growth (outpatient and inpatient), to 3.58 percent and limit Medicare per capita hospital cost growth to a rate lower than the national annual per capita grown per year from 2015-2018.
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