The Vermont Legislature's Joint Fiscal Committee on Tuesday voted 7-1 to approve a five-year Medicaid plan that would have the state operate a managed care organization for beneficiaries, the Burlington Free Press reports (Hallenbeck, Burlington Free Press, 12/14). Vermont earlier this year received permission from the federal government to implement the program. In exchange, Vermont has agreed to spend no more than $4.7 billion on Medicaid over the next five years. The federal government will cover about 60% of Vermont Medicaid costs over that time period (Kaiser Daily Health Policy Report, 10/3). The program is expected to reduce the state's Medicaid budget deficit by one-third, the Free Press reports. Without the deal, the state faced a $370 million program budget deficit over the next five years, according to the Free Press (Burlington Free Press, 12/14). Vermont is the first state to receive federal permission to run its optional Medicaid services under an MCO, the Rutland Herald reports. State Human Services Secretary Michael Smith in a letter Tuesday to CMS Administrator Mark McClellan said, "We believe that the demonstration will enable us to better serve Vermonters through more effective use of state and federal resources. Under the Global Commitment to Health waiver, Vermont will demonstrate its ability to promote universal access to health care" (Allen, Rutland Herald, 12/14). State Rep. Michael Obuchowski (D), who was the one dissenting vote, said he is concerned about future Medicaid beneficiaries and costs (Burlington Free Press, 12/14).

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