Wolf Administration Announces Health Reform Plan

Amid the pandemic, rising health care costs and magnified health inequities, Gov. Tom Wolf unveiled a plan that addresses comprehensive health reforms focusing on both physical and behavioral health and promoting affordability, accessibility and value in health care. The three main components of the plan include:

  • Interagency Health Reform Council (IHRC). Established with an executive order the governor signed at the press conference today, the council will be composed of commonwealth agencies involved in health and the governor’s office. The initial goal will be to develop recommendations by Dec. 30 to find efficiencies in the healthcare system by thinking about how to align programs where feasible, including the joint purchasing of medications, aligning value-based purchasing models, and using data across state agencies to promote evidence-based decisions.
  • Regional Accountable Health Councils (RAHCs). The Department of Human Services will add requirements to form five RAHCs across the state into the managed care agreements. RAHCs will be required to collectively develop regional transformation plans–built on community needs assessments–to reduce disparities, address social determinants of health, and align value-based purchasing arrangements.
  • Health Value Commission. The governor will work with the legislature to establish the Health Value Commission, charged with keeping all payors and providers accountable for healthcare cost growth, to provide the long-term affordability and sustainability of our healthcare system, and to promote whole-person care. As proposed, the newly created entity would be led by up to 15 commissioners appointed by the governor and the General Assembly who have an expertise in the healthcare marketplace, including five state agency heads.

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