California Governor Gavin Newsom has signed legislation extending a pilot program that allows school districts to partner with medical groups for workforce healthcare purchases for four additional years. The pilot, run by the California Schools Voluntary Employees Benefits Association (VEBA) and America’s Physician Groups (APG), aims to implement a value-based payment model that reduces healthcare costs while improving patient outcomes. In just eight months, the pilot has reported $1 million in savings for nearly 5,000 enrollees, indicating strong potential for future savings and enhanced care quality. Click here for article.
The pilot program allows California school districts to directly contract with medical groups for healthcare, extending its duration to four years.
VEBA has already saved $1 million for nearly 5,000 enrollees in the first eight months, showcasing the program's effectiveness.
America’s Physician Groups and VEBA support the extension, emphasizing its potential to innovate healthcare payment models and improve patient outcomes.
The pilot highlights significant differences in cost increases between coverage models, underscoring the need for innovative payment solutions in healthcare.
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