The bill S.197 aims to establish a primary care payment reform program in Vermont, which will provide participating primary care providers with a monthly payment from health insurers for each patient, covering routine primary care services without any cost-sharing requirements. The program is designed to enhance access to primary care, improve health outcomes for Vermonters, and reduce overall healthcare costs. The Department of Vermont Health Access, in collaboration with the Green Mountain Care Board and other stakeholders, will develop and implement this program, which will initially be voluntary for primary care practices but will become mandatory by January 1, 2028. The bill also mandates various reports from state agencies on the program's progress, transitioning care from hospitals to community settings, and exploring a regional universal primary care program.

Additionally, the bill eliminates the 2027 sunset provision on a primary care physician scholarship program, ensuring continued support for future primary care providers. It includes provisions for collecting and aggregating payments from participating payers to facilitate a capitated payment model, streamlining administrative burdens on primary care practices, and establishing quality measures to enhance care delivery. The bill emphasizes the importance of increasing the proportion of healthcare spending allocated to primary care, with a target of 15% by January 1, 2029, while ensuring that this increase does not lead to a rise in total healthcare spending in Vermont.