Scott vetoes Legislature’s latest attempt at healthcare reform
Gov. Phil Scott vetoed S.190, a healthcare bill intended to fast-track insurance premium savings for public school employees and Affordable Care Act marketplace customers. According to a Tuesday letter, Scott rejected the measure to ensure cost savings are shared broadly across the insurance system rather than targeting specific groups.
Why did Gov. Scott veto the healthcare bill?
Gov. Phil Scott cited marketplace fairness as the primary reason for the veto. He wrote that lasting progress requires structural reforms that expand choices and ensure savings are shared broadly, stating, “Vermont will not solve its affordability crisis by directing savings to some payers while excluding others.”
Kaj Samsom, commissioner of the Vermont Department of Financial Regulation, called the focus on a minority of Vermonters “problematic.” He noted in May that the Green Mountain Care Board already has the power to reduce hospital budgets without targeting specific insurance buyers.
How would reference-based pricing have worked under S.190?
Lawmakers previously set a path to implement reference-based pricing for all Vermont hospitals in 2025. However, the Green Mountain Care Board must first complete a rulemaking process that would not be finished by the start of the hospital fiscal year in October.
S.190 sought to bypass this delay for two specific groups: public school employees and those using the Affordable Care Act marketplace. Rep. Alyssa Black, D-Essex Town, stated that targeting teacher insurance was necessary because property taxpayers bear those costs.
What are the conflicting views on premium savings?
Rep. Alyssa Black, who chairs the House healthcare committee, argued that general hospital revenue cuts would have “no discernible effect on premiums.” She claimed that spreading savings evenly across all premiums would only result in marginal changes.
Gov. Scott disagreed, pointing to a history of broad reductions. He noted the care board called for $40 million in hospital revenue reductions this fiscal year, following nearly $100 million in total reductions last year that led to smaller commercial insurance rate increases.
What happens next for Vermont healthcare reform?
Gov. Scott intends to use executive action to advance parts of H.585, a different insurance reform bill that did not become law. That proposal included allowing insurers to charge premiums based on age and permitting small businesses to form insurance buying pools.
Chief healthcare advocate Mike Fisher expressed disappointment over the veto but said it does not derail the long-term effort to reduce hospital costs. Fisher noted that Vermont still has the most expensive insurance rates in the country and cannot afford to miss a year of progress.
Frequently Asked Questions
Who would have received immediate savings under S.190?
The bill was designed to fast-track premium savings specifically for public school employees and people purchasing plans on Vermont’s Affordable Care Act marketplace.
Why did Rep. Alyssa Black describe the veto as “vengeful”?
Black stated that the governor’s administration had been integral to creating the bill alongside healthcare policy experts and that it represented a final step in two years of collaborative work.
What is the Green Mountain Care Board’s role in this process?
As the state’s main healthcare regulator, the board is tasked with a statutorily defined mission to share cost savings equally among insurers and the insured.
Should healthcare savings be targeted toward specific high-cost groups or distributed equally across all insurers?