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Maryland announces agreement on all-payer health model

May 14, 2018 GMT

ANNAPOLIS, Md. (AP) — Maryland officials have announced federal approval of a contract for the state’s unique all-payer health care model.

State health officials on Monday announced the approval with the federal Centers for Medicare and Medicaid Services.

Maryland is the only state that can set its own pay rate for hospitals, and all must charge the same rate for services. The policy has been in place since the 1970s. Maryland modernized its one-of-a-kind Medicare waiver four years ago to move away from reimbursing hospitals on a fee-for-service basis to a fixed budget.

The state’s current model was approved in 2014, but it focused on hospitals. The new model will include health care patients receive in hospitals and the community.

The new model will take effect Jan. 1 and last through 2023.