Governor Moore Signs Historic Agreement to Advance Innovative and Equitable Health Care, Lower Health Care Costs for Marylanders
ANNAPOLIS, MD — Governor Wes Moore hosted Centers for Medicare and Medicaid Services Administrator Chiquita Brooks-LaSure; U.S. Senators Ben Cardin and Chris Van Hollen; Maryland Department of Health Secretary Dr. Laura Herrera Scott; and Health Services Cost Review Commission Chair Joshua Sharfstein to sign Maryland’s agreement to participate in the federal States Advancing All-Payer Equity Approaches and Development Model.
Known as the “AHEAD Model,” Maryland is the first state to sign such an agreement, which will promote health care transformation both by improving population health and lowering costs across all payers—including Medicare, Medicaid, and private insurers.
“Maryland is leading the nation through its participation in the AHEAD Model, paving the way for a brighter, healthier future,” said Gov. Moore. “Affordable, accessible, and equitable health care is the foundation on which we build everything else – from safer neighborhoods to more vibrant communities. Together, in coordination with our federal partners, we are honoring our commitment to creating a healthier state and leaving no one behind.”
“Maryland’s participation in the AHEAD Model is a critical step forward in improving the overall
health of its residents, supporting primary care, transforming health care in communities
throughout the state, and addressing disparities in the health care system,” said Centers for Medicare and Medicaid Services Administrator Chiquita Brooks-LaSure. “CMS applauds Maryland’s leadership in slowing health care costs while driving innovation and improving health care delivery for Marylanders.”
The AHEAD Model supports the delivery of high-quality care through greater care coordination and focus on health equity and health-related social needs to support underserved patients. The model builds upon the Total Cost of Care Model, which sets a per capita limit on Medicare’s total cost of care in Maryland and encompasses Maryland's unique all-payer hospital payment system, which reduces per capita hospital expenditures and supports improved health outcomes as encouraged by the Affordable Care Act.
Implementation of the AHEAD Model will begin January 1, 2026.
“For nearly 50 years, Maryland has worked to champion healthcare innovation, so that every Marylander has access to high quality health care. Through collaboration with state and federal partners, the launch of the AHEAD model provides an opportunity to build on this legacy and continue to deliver for Marylanders. We must continue our commitment to health equity and use this new system to work towards the elimination of long-standing health disparities,” said U.S. Senator Ben Cardin. “Team Maryland must work to ensure that this update to our all-payer model continues to make health care more accessible and equitable while maintaining Maryland’s unique system.”
“Maryland is the first state to enter into this innovative partnership with the federal government to achieve our triple goal: quality, affordable, equitable health care for every Marylander,” said U.S. Senator Chris Van Hollen. “We look forward to implementing this AHEAD model to build a healthy future for all.”
“Under AHEAD, Maryland has more tools and resources than ever to create a health care delivery system that Marylanders deserve,” said Maryland Department of Health Secretary Dr. Laura Herrera Scott. “With a focus on improving access to primary care and addressing population health needs of Marylanders, under AHEAD we will expand upon the work initiated by the Total Cost of Care Model.”
With the signing of today’s agreement, the Maryland Department of Health will begin planning for model implementation with stakeholders. Planning will include establishing targets for cost growth, quality and equity improvements, population health, and primary care investments as well as identifying regional partnerships to drive AHEAD goals.
“This is an exciting day for health and health care in Maryland,” said Health Services Cost Review Commission Chair Dr. Joshua Sharfstein. "Building on our strong legacy of innovation and our track record of national leadership, Maryland is working towards a health care system that provides accessible, affordable, and high quality clinical care and supports the health and well-being of individuals, families, and communities."
The Centers for Medicare and Medicaid Services selected five other states—Vermont, Connecticut, Hawaii, Rhode Island, and regions of New York— for participation in the AHEAD Model.
For more information about the AHEAD Model in Maryland, visit hscrc.maryland.gov
