Kingsdale noted that Massachusetts was motivated to deelop the Connector project in response to the threatened loss of $385 million in federal subsidies. The lesson, he said, is that “sticks are as important as car-rots" when it comes to providing incentives for health system innovation.
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In Vermont, the development of the Catamount Health Plan was largely driven by “the growing insecurity of health care consumers," said James Leddy, a former state legislator and a consultant on health care reform.