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MD Governor Signs Contract to Beef Up Health Care System

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ANNAPOLIS, Md. (AP) - Maryland Gov. Larry Hogan has signed a contract with the federal government to enact the state's unique all-payer health care model.

Hogan signed the five-year contract Monday with Seema Verma, who is the administrator of the federal Centers for Medicare and Medicaid Services.

Overall, the model aims to provide incentives in the state's health care system to emphasize the quality of care over the quantity of care and focus on value rather than volume.

Maryland health secretary Robert Neall says if successful, the plan could be replicated around the country to address financial strain on Medicare.

The Hogan administration says it's expected to save an added $300 million a year by 2023, providing about $1 billion in savings over five years.