Leaders from the state of Maryland and the Centers for Medicare and Medicaid Services recently held a ceremony for the state to sign its agreement to participate in the federal All Payer Equity Approaches and Development (AHEAD) model. .
Maryland is the first state to sign such an agreement, which will advance the transformation of health care by improving population health and reducing costs for all payers, including Medicare, Medicaid and private insurers. CMS selected five other states (Vermont, Connecticut, Hawaii, Rhode Island, and regions of New York) to participate in the AHEAD model.
With the signing of the agreement, the Maryland Department of Health will begin planning the implementation of the model with stakeholders. Planning will include setting targets for cost growth, quality and equity improvements, population health and investments in primary care, as well as identifying regional partnerships to advance AHEAD goals.
The AHEAD model supports the delivery of high-quality care through increased care coordination and focuses on health equity and health-related social needs to support underserved patients.
The model is based on the Total Cost of Care Model, which sets a per capita cap on the total cost of Medicare care in Maryland and encompasses Maryland’s unique all-payer hospital payment system, which reduces spending per capita and supports better health outcomes as encouraged by the Affordable Care Act.
Implementation of the AHEAD Model will begin on January 1, 2026.
“Maryland’s participation in the AHEAD model is a critical step to improve the overall health of its residents, support primary care, transform health care in communities across the state, and address disparities in the health care system,” CMS Administrator Chiquita Brooks-LaSure said in a statement. “CMS applauds Maryland’s leadership in reducing healthcare costs while driving innovation and improving healthcare delivery for Marylanders.”
“Under AHEAD, Maryland has more tools and resources than ever to create a health care delivery system that Marylanders deserve,” Maryland Department of Health Secretary Dr. Laura Herrera Scott said in a statement. “With a focus on improving access to primary care and addressing the health needs of Maryland’s population, under AHEAD we will expand the work started by the Total Cost of Care Model.”
