81_FR_91416 81 FR 91174 - Medicare Program; Start-Up Funding in Support of the Vermont All-Payer Accountable Care Organization (ACO) Model-Cooperative Agreement

81 FR 91174 - Medicare Program; Start-Up Funding in Support of the Vermont All-Payer Accountable Care Organization (ACO) Model-Cooperative Agreement

DEPARTMENT OF HEALTH AND HUMAN SERVICES
Centers for Medicare & Medicaid Services

Federal Register Volume 81, Issue 242 (December 16, 2016)

Page Range91174-91175
FR Document2016-30269

The purpose of this notice is to announce issuance of the November 23, 2016 single-source cooperative agreement funding opportunity available solely to Vermont's Agency of Human Services in order to provide care coordination and bolster collaboration for practices and community-based health care providers as part of the Vermont All[dash]Payer Accountable Care Organization (ACO) Model.

Federal Register, Volume 81 Issue 242 (Friday, December 16, 2016)
[Federal Register Volume 81, Number 242 (Friday, December 16, 2016)]
[Notices]
[Pages 91174-91175]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-30269]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Centers for Medicare & Medicaid Services

[CMS-5521-N]


Medicare Program; Start-Up Funding in Support of the Vermont All-
Payer Accountable Care Organization (ACO) Model--Cooperative Agreement

AGENCY: Centers for Medicare & Medicaid Services (CMS), HHS.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: The purpose of this notice is to announce issuance of the 
November 23, 2016 single-source cooperative agreement funding 
opportunity available solely to Vermont's Agency of Human Services in 
order to provide care coordination and bolster collaboration for 
practices and community-based health care providers as part of the 
Vermont All[dash]Payer Accountable Care Organization (ACO) Model.

DATES: The performance period of the Vermont All-Payer ACO Model will 
begin on January 1, 2017, and conclude on December 31, 2022.

FOR FURTHER INFORMATION CONTACT: Stephen Cha, (410) 786-1876.

SUPPLEMENTARY INFORMATION:

I. Background

    The Vermont All-Payer Accountable Care Organization Model (Model) 
is the Centers for Medicare & Medicaid Services' (CMS) new test within 
the Center for Medicare and Medicaid Innovation of an alternative 
payment model in which the major health care payers--Medicare, 
Medicaid, and commercial health care payers--incentivize health care 
value and quality under the same payment structure for health care 
providers throughout the state's care delivery system to transform 
health care for the entire state and its population. An Accountable 
Care Organization (ACO) is an entity formed by certain health care 
providers that accepts financial accountability for the overall quality 
and cost of medical care furnished to, and health of, beneficiaries 
attributed to the entity.
    CMS believes that states can be critical partners of the federal 
government and other health care payers to facilitate the design, 
implementation, and evaluation of community-centered health systems 
that can deliver significantly improved cost, quality, and population 
health performance results for all state residents, including Medicare, 
Medicaid, and Children's Health Insurance Program (CHIP) beneficiaries. 
States have policy and regulatory authorities, as well as ongoing 
relationships with commercial healthcare payers, health plans, and 
health care providers that can accelerate delivery system reform. CMS 
has previously partnered with states to accelerate delivery system 
reform through initiatives such as the State Innovations Model (SIM). 
SIM provides state-based healthcare transformation efforts with funding 
to test the ability of states to utilize policy and regulatory levers 
to accelerate multi-payer health care transformation.
    Vermont, a SIM state awardee, approached CMS with a desire to 
include Medicare in the state's multipayer payment and care delivery 
model, and Vermont publicly released its proposal on January 25, 2016. 
CMS reviewed Vermont's proposal and determined that it met the 
necessary requirements to explore a potential Vermont-specific model in 
which Medicare aligns with Vermont's healthcare transformation efforts. 
In October 2016, CMS and the State of Vermont entered into the Vermont 
All-Payer Accountable Care Organization Model Agreement (``State 
Agreement'') to implement the Vermont All-Payer ACO Model. The Vermont 
All-Payer ACO Model will be a 6-year model beginning in 2017 and ending 
in 2022.
    As part of the Model, Vermont health care providers will 
participate in a Vermont-specific Medicare ACO initiative (the Vermont 
Medicare ACO Initiative), which is largely based on CMS' Next 
Generation ACO Model. CMS will provide one-time start-up funding in the 
amount of $9,500,000 to the State to assist Vermont health care 
providers with care coordination and bolster their collaboration with 
community-based resources. CMS will provide the start-up funding as a 
cooperative agreement funding opportunity available solely to Vermont's 
Agency of Human Services, as announced in this notice. More information 
about the Vermont All-Payer ACO Model can be found at https://innovation.cms.gov/initiatives/vermont-all-payer-aco-model/.
    Through the Model, CMS will test whether the quality of health care 
for Vermont residents improves and healthcare expenditures for 
beneficiaries across payers (including Medicare fee-for-service, 
Vermont Medicaid, Vermont commercial plans, and Vermont self-insured 
plans) decrease if--
     The aforementioned payers offer Vermont ACOs risk-based 
arrangements tied to health outcomes and healthcare expenditures;
     The majority of Vermont health care providers enter into 
such risk-based arrangements; and
     The majority of Vermont residents across payers are 
aligned to an ACO bound by these arrangements.
    CMS and Vermont aim for broad ACO participation throughout the 
state, across all the significant payers and the majority of the care 
delivery system, to make redesigning the entire care delivery system a 
rational business strategy for Vermont health care providers and 
payers. As set forth in the State Agreement, Vermont commits to 
achieving statewide health outcomes, financial targets, and ACO scale 
(percentage of Vermont residents

[[Page 91175]]

aligned to an ACO) targets--both for Medicare and across all 
significant healthcare payers. Additionally, CMS and Vermont aim for 
this Model to deliver meaningful improvements in the health of a 
state's entire population by transforming the relationships between and 
amongst care delivery and public health systems across Vermont.

II. Provisions of the Notice

    The purpose of this notice is to announce a single source 
cooperative agreement funding opportunity in the amount of $9,500,000 
available solely to Vermont's Agency of Human Services (AHS) to support 
care coordination and bolster collaboration for practices and 
community-based health care providers as part of the Vermont 
All[dash]Payer ACO Model. A single-source award to the AHS will enable 
CMS to provide assistance to Vermont for the following purposes: To 
connect Medicare fee-for-service beneficiaries with community-based 
resources, coordinate transitions across care settings with appropriate 
involvement of the Medicare fee-for-service beneficiaries' primary care 
providers, coordinate care across health care providers, support health 
promotion and self-management by Medicare fee-for-service 
beneficiaries, and support practice improvement and transformation. 
These activities are necessary for Vermont to achieve the health 
outcomes and financial goals required under the Vermont All-Payer ACO 
Model.
    CMS and Vermont believe the Vermont All-Payer ACO Model can support 
health care providers, including physicians in small practices, to 
succeed as health care moves from fee-for-service to value-based 
payment systems. Participation by health care providers and payers in 
the model will be voluntary, and CMS and Vermont expect to work closely 
together to achieve sufficient uptake. In particular, this Model is 
being implemented using the Secretary's authority in section 1115A of 
the Social Security Act (the Act) and Vermont's Global Commitment to 
Health demonstration project authorized under section 1115 of the Act. 
Together these authorities make it possible for physicians and other 
clinicians in Vermont to participate the aligned and state-specific 
Vermont Medicare ACO Initiative and Medicaid ACO initiative. Under the 
Quality Payment Program, the two-sided risk portion of the Vermont 
Medicare ACO Initiative meets the criteria to be an Advanced 
Alternative Payment Model. Health care providers participating in the 
two-sided risk portion of the Vermont Medicare ACO Initiative may 
potentially qualify for the APM Incentive Payments starting in 
performance year 2018.
    This single-source funding opportunity to the AHS is designed to 
meet the goals of the cooperative agreement based on the AHS' existing 
knowledge and role in supporting the Model, its existing partnerships 
and collaborations with Vermont health care providers, and its 
resources and ability to deploy the funding immediately.

III. Collection of Information Requirements

    This document does not impose information collection requirements, 
that is, reporting, recordkeeping or third-party disclosure 
requirements. Consequently, there is no need for review by the Office 
of Management and Budget under the authority of the Paperwork Reduction 
Act of 1995 (44 U.S.C. 3501 et seq.).

    Dated: December 6, 2016.
Andrew M. Slavitt,
Acting Administrator, Centers for Medicare & Medicaid Services.
[FR Doc. 2016-30269 Filed 12-15-16; 8:45 am]
 BILLING CODE 4120-01-P



                                                  91174                       Federal Register / Vol. 81, No. 242 / Friday, December 16, 2016 / Notices

                                                  assets or the ownership of, control of, or              available solely to Vermont’s Agency of               multipayer payment and care delivery
                                                  the power to vote shares of a bank or                   Human Services in order to provide care               model, and Vermont publicly released
                                                  bank holding company and all of the                     coordination and bolster collaboration                its proposal on January 25, 2016. CMS
                                                  banks and nonbanking companies                          for practices and community-based                     reviewed Vermont’s proposal and
                                                  owned by the bank holding company,                      health care providers as part of the                  determined that it met the necessary
                                                  including the companies listed below.                   Vermont All-Payer Accountable Care                    requirements to explore a potential
                                                    The applications listed below, as well                Organization (ACO) Model.                             Vermont-specific model in which
                                                  as other related filings required by the                DATES: The performance period of the                  Medicare aligns with Vermont’s
                                                  Board, are available for immediate                      Vermont All-Payer ACO Model will                      healthcare transformation efforts. In
                                                  inspection at the Federal Reserve Bank                  begin on January 1, 2017, and conclude                October 2016, CMS and the State of
                                                  indicated. The applications will also be                on December 31, 2022.                                 Vermont entered into the Vermont All-
                                                  available for inspection at the offices of              FOR FURTHER INFORMATION CONTACT:
                                                                                                                                                                Payer Accountable Care Organization
                                                  the Board of Governors. Interested                      Stephen Cha, (410) 786–1876.                          Model Agreement (‘‘State Agreement’’)
                                                  persons may express their views in                                                                            to implement the Vermont All-Payer
                                                                                                          SUPPLEMENTARY INFORMATION:
                                                  writing on the standards enumerated in                                                                        ACO Model. The Vermont All-Payer
                                                  the BHC Act (12 U.S.C. 1842(c)). If the                 I. Background                                         ACO Model will be a 6-year model
                                                  proposal also involves the acquisition of                                                                     beginning in 2017 and ending in 2022.
                                                                                                             The Vermont All-Payer Accountable
                                                  a nonbanking company, the review also                                                                            As part of the Model, Vermont health
                                                                                                          Care Organization Model (Model) is the                care providers will participate in a
                                                  includes whether the acquisition of the                 Centers for Medicare & Medicaid
                                                  nonbanking company complies with the                                                                          Vermont-specific Medicare ACO
                                                                                                          Services’ (CMS) new test within the                   initiative (the Vermont Medicare ACO
                                                  standards in section 4 of the BHC Act                   Center for Medicare and Medicaid
                                                  (12 U.S.C. 1843). Unless otherwise                                                                            Initiative), which is largely based on
                                                                                                          Innovation of an alternative payment                  CMS’ Next Generation ACO Model.
                                                  noted, nonbanking activities will be                    model in which the major health care
                                                  conducted throughout the United States.                                                                       CMS will provide one-time start-up
                                                                                                          payers—Medicare, Medicaid, and                        funding in the amount of $9,500,000 to
                                                    Unless otherwise noted, comments                      commercial health care payers—
                                                  regarding each of these applications                                                                          the State to assist Vermont health care
                                                                                                          incentivize health care value and                     providers with care coordination and
                                                  must be received at the Reserve Bank                    quality under the same payment
                                                  indicated or the offices of the Board of                                                                      bolster their collaboration with
                                                                                                          structure for health care providers                   community-based resources. CMS will
                                                  Governors not later than January 17,                    throughout the state’s care delivery
                                                  2017.                                                                                                         provide the start-up funding as a
                                                                                                          system to transform health care for the               cooperative agreement funding
                                                    A. Federal Reserve Bank of St. Louis                  entire state and its population. An
                                                  (David L. Hubbard, Senior Manager)                                                                            opportunity available solely to
                                                                                                          Accountable Care Organization (ACO) is                Vermont’s Agency of Human Services,
                                                  P.O. Box 442, St. Louis, Missouri                       an entity formed by certain health care
                                                  63166–2034. Comments can also be sent                                                                         as announced in this notice. More
                                                                                                          providers that accepts financial                      information about the Vermont All-
                                                  electronically to                                       accountability for the overall quality
                                                  Comments.applications@stls.frb.org:                                                                           Payer ACO Model can be found at
                                                                                                          and cost of medical care furnished to,                https://innovation.cms.gov/initiatives/
                                                    1. Farmers Bancorp, Inc., Blytheville,                and health of, beneficiaries attributed to
                                                  Arkansas; to acquire 100 percent of                                                                           vermont-all-payer-aco-model/.
                                                                                                          the entity.                                              Through the Model, CMS will test
                                                  Tennessee Bank & Trust, Nashville,                         CMS believes that states can be
                                                  Tennessee, a de nova bank.                                                                                    whether the quality of health care for
                                                                                                          critical partners of the federal                      Vermont residents improves and
                                                    Board of Governors of the Federal Reserve             government and other health care                      healthcare expenditures for
                                                  System, December 13, 2016.                              payers to facilitate the design,                      beneficiaries across payers (including
                                                  Yao-Chin Chao,                                          implementation, and evaluation of                     Medicare fee-for-service, Vermont
                                                  Assistant Secretary of the Board.                       community-centered health systems that                Medicaid, Vermont commercial plans,
                                                  [FR Doc. 2016–30301 Filed 12–15–16; 8:45 am]            can deliver significantly improved cost,              and Vermont self-insured plans)
                                                  BILLING CODE 6210–01–P
                                                                                                          quality, and population health                        decrease if—
                                                                                                          performance results for all state                        • The aforementioned payers offer
                                                                                                          residents, including Medicare,                        Vermont ACOs risk-based arrangements
                                                  DEPARTMENT OF HEALTH AND                                Medicaid, and Children’s Health                       tied to health outcomes and healthcare
                                                  HUMAN SERVICES                                          Insurance Program (CHIP) beneficiaries.               expenditures;
                                                                                                          States have policy and regulatory                        • The majority of Vermont health care
                                                  Centers for Medicare & Medicaid                         authorities, as well as ongoing                       providers enter into such risk-based
                                                  Services                                                relationships with commercial                         arrangements; and
                                                                                                          healthcare payers, health plans, and                     • The majority of Vermont residents
                                                  [CMS–5521–N]                                            health care providers that can accelerate             across payers are aligned to an ACO
                                                  Medicare Program; Start-Up Funding in                   delivery system reform. CMS has                       bound by these arrangements.
                                                                                                          previously partnered with states to                      CMS and Vermont aim for broad ACO
                                                  Support of the Vermont All-Payer
                                                                                                          accelerate delivery system reform                     participation throughout the state,
                                                  Accountable Care Organization (ACO)
                                                                                                          through initiatives such as the State                 across all the significant payers and the
                                                  Model—Cooperative Agreement
                                                                                                          Innovations Model (SIM). SIM provides                 majority of the care delivery system, to
                                                          Centers for Medicare &                          state-based healthcare transformation                 make redesigning the entire care
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                                                  AGENCY:
                                                  Medicaid Services (CMS), HHS.                           efforts with funding to test the ability of           delivery system a rational business
                                                  ACTION: Notice.                                         states to utilize policy and regulatory               strategy for Vermont health care
                                                                                                          levers to accelerate multi-payer health               providers and payers. As set forth in the
                                                  SUMMARY:  The purpose of this notice is                 care transformation.                                  State Agreement, Vermont commits to
                                                  to announce issuance of the November                       Vermont, a SIM state awardee,                      achieving statewide health outcomes,
                                                  23, 2016 single-source cooperative                      approached CMS with a desire to                       financial targets, and ACO scale
                                                  agreement funding opportunity                           include Medicare in the state’s                       (percentage of Vermont residents


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                                                                              Federal Register / Vol. 81, No. 242 / Friday, December 16, 2016 / Notices                                          91175

                                                  aligned to an ACO) targets—both for                     potentially qualify for the APM                       information collection for the proper
                                                  Medicare and across all significant                     Incentive Payments starting in                        performance of the agency’s functions;
                                                  healthcare payers. Additionally, CMS                    performance year 2018.                                the accuracy of the estimated burden;
                                                  and Vermont aim for this Model to                         This single-source funding                          ways to enhance the quality, utility, and
                                                  deliver meaningful improvements in the                  opportunity to the AHS is designed to                 clarity of the information to be
                                                  health of a state’s entire population by                meet the goals of the cooperative                     collected; and the use of automated
                                                  transforming the relationships between                  agreement based on the AHS’ existing                  collection techniques or other forms of
                                                  and amongst care delivery and public                    knowledge and role in supporting the                  information technology to minimize the
                                                  health systems across Vermont.                          Model, its existing partnerships and                  information collection burden.
                                                                                                          collaborations with Vermont health care               DATES: Comments must be received by
                                                  II. Provisions of the Notice
                                                                                                          providers, and its resources and ability              February 14, 2017.
                                                     The purpose of this notice is to                     to deploy the funding immediately.                    ADDRESSES: When commenting, please
                                                  announce a single source cooperative
                                                  agreement funding opportunity in the                    III. Collection of Information                        reference the document identifier or
                                                  amount of $9,500,000 available solely to                Requirements                                          OMB control number. To be assured
                                                  Vermont’s Agency of Human Services                                                                            consideration, comments and
                                                                                                             This document does not impose
                                                  (AHS) to support care coordination and                                                                        recommendations must be submitted in
                                                                                                          information collection requirements,
                                                  bolster collaboration for practices and                                                                       any one of the following ways:
                                                                                                          that is, reporting, recordkeeping or
                                                                                                                                                                  1. Electronically. You may send your
                                                  community-based health care providers                   third-party disclosure requirements.
                                                                                                                                                                comments electronically to http://
                                                  as part of the Vermont All-Payer ACO                    Consequently, there is no need for
                                                  Model. A single-source award to the                                                                           www.regulations.gov. Follow the
                                                                                                          review by the Office of Management and
                                                  AHS will enable CMS to provide                                                                                instructions for ‘‘Comment or
                                                                                                          Budget under the authority of the
                                                  assistance to Vermont for the following                                                                       Submission’’ or ‘‘More Search Options’’
                                                                                                          Paperwork Reduction Act of 1995 (44
                                                  purposes: To connect Medicare fee-for-                                                                        to find the information collection
                                                                                                          U.S.C. 3501 et seq.).
                                                  service beneficiaries with community-                                                                         document(s) that are accepting
                                                                                                            Dated: December 6, 2016.                            comments.
                                                  based resources, coordinate transitions
                                                                                                          Andrew M. Slavitt,                                      2. By regular mail. You may mail
                                                  across care settings with appropriate
                                                  involvement of the Medicare fee-for-                    Acting Administrator, Centers for Medicare            written comments to the following
                                                  service beneficiaries’ primary care                     & Medicaid Services.                                  address: CMS, Office of Strategic
                                                  providers, coordinate care across health                [FR Doc. 2016–30269 Filed 12–15–16; 8:45 am]          Operations and Regulatory Affairs,
                                                  care providers, support health                          BILLING CODE 4120–01–P                                Division of Regulations Development,
                                                  promotion and self-management by                                                                              Attention: Document Identifier/OMB
                                                  Medicare fee-for-service beneficiaries,                                                                       Control Number ll Room C4–26–05,
                                                  and support practice improvement and                    DEPARTMENT OF HEALTH AND                              7500 Security Boulevard, Baltimore,
                                                  transformation. These activities are                    HUMAN SERVICES                                        Maryland 21244–1850.
                                                  necessary for Vermont to achieve the                                                                            To obtain copies of a supporting
                                                                                                          Centers for Medicare & Medicaid                       statement and any related forms for the
                                                  health outcomes and financial goals
                                                                                                          Services                                              proposed collection(s) summarized in
                                                  required under the Vermont All-Payer
                                                  ACO Model.                                              [Document Identifiers: CMS–4040, CMS–                 this notice, you may make your request
                                                     CMS and Vermont believe the                          10156, CMS–10170, CMS–10198, CMS–                     using one of following:
                                                  Vermont All-Payer ACO Model can                         10227, CMS–10344, CMS–10501, CMS–R–                     1. Access CMS’ Web site address at
                                                  support health care providers, including                266, and CMS–10282]                                   http://www.cms.hhs.gov/
                                                  physicians in small practices, to                                                                             PaperworkReductionActof1995.
                                                  succeed as health care moves from fee-                  Agency Information Collection                           2. Email your request, including your
                                                  for-service to value-based payment                      Activities: Proposed Collection;                      address, phone number, OMB number,
                                                  systems. Participation by health care                   Comment Request                                       and CMS document identifier, to
                                                  providers and payers in the model will                                                                        Paperwork@cms.hhs.gov.
                                                                                                          AGENCY: Centers for Medicare &                          3. Call the Reports Clearance Office at
                                                  be voluntary, and CMS and Vermont                       Medicaid Services, HHS.
                                                  expect to work closely together to                                                                            (410) 786–1326.
                                                                                                          ACTION: Notice.
                                                  achieve sufficient uptake. In particular,                                                                     FOR FURTHER INFORMATION CONTACT:
                                                  this Model is being implemented using                   SUMMARY:   The Centers for Medicare &                 Reports Clearance Office at (410) 786–
                                                  the Secretary’s authority in section                    Medicaid Services (CMS) is announcing                 1326.
                                                  1115A of the Social Security Act (the                   an opportunity for the public to                      SUPPLEMENTARY INFORMATION:
                                                  Act) and Vermont’s Global Commitment                    comment on CMS’ intention to collect
                                                  to Health demonstration project                         information from the public. Under the                Contents
                                                  authorized under section 1115 of the                    Paperwork Reduction Act of 1995 (the                    This notice sets out a summary of the
                                                  Act. Together these authorities make it                 PRA), federal agencies are required to                use and burden associated with the
                                                  possible for physicians and other                       publish notice in the Federal Register                following information collections. More
                                                  clinicians in Vermont to participate the                concerning each proposed collection of                detailed information can be found in
                                                  aligned and state-specific Vermont                      information (including each proposed                  each collection’s supporting statement
                                                  Medicare ACO Initiative and Medicaid                    extension or reinstatement of an existing             and associated materials (see
                                                  ACO initiative. Under the Quality                       collection of information) and to allow               ADDRESSES).
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                                                  Payment Program, the two-sided risk                     60 days for public comment on the                     CMS–4040 Request for Enrollment in
                                                  portion of the Vermont Medicare ACO                     proposed action. Interested persons are                    Supplementary Medical Insurance
                                                  Initiative meets the criteria to be an                  invited to send comments regarding our                CMS–10156 Retiree Drug Subsidy
                                                  Advanced Alternative Payment Model.                     burden estimates or any other aspect of                    (RDS) Application and Instructions
                                                  Health care providers participating in                  this collection of information, including             CMS–10170 Retiree Drug Subsidy
                                                  the two-sided risk portion of the                       any of the following subjects: the                         (RDS) Payment Request and
                                                  Vermont Medicare ACO Initiative may                     necessity and utility of the proposed                      Instructions


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Document Created: 2018-02-14 09:07:31
Document Modified: 2018-02-14 09:07:31
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionNotice.
DatesThe performance period of the Vermont All-Payer ACO Model will begin on January 1, 2017, and conclude on December 31, 2022.
ContactStephen Cha, (410) 786-1876.
FR Citation81 FR 91174 

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