By Michael Bielawski
A bipartisan group of lawmakers and former Gov. James Douglas met at the Statehouse to present a way to reign in runaway health insurance premiums. The coalition calls itself Vermont Healthcare 911.
“Vermonters pay twice as much for commercial health insurance as most people around the United States, and you’ll see that the trend line is unfavorable,” said former governor Jim Douglas, the co-chair of the coalition’s Leadership Council. “It’s been going up rapidly the last few years with showing little sign of retreat.”
Their data showed that a higher percentage of healthcare costs in Vermont go to administrative costs compared to similar providers in other states. The economic impact is hitting both business and housing sectors.
“In terms of attracting businesses to locate or expand here, in terms of attracting employees who come to work in Vermont, in terms of attracting more families to make this their home,” Douglas said.
Concerning data included that if a patient goes to UVM Medical Center for service, 71% of the bill is just for “administration and management”. Of Vermont’s total hospital expenditures, 54.5% goes to those costs. At small rural hospitals that drops to 28.5%, and for rural critical access hospitals, it is 17%.
“We pay by quite a substantial amount the most for health insurance of any state,” said former Senator Chris Pearson for Chittenden County, who is also the chair of the board of directors. “You can see Vermont has spiked in the last several years, almost twice what our neighbors pay in Maine, two and a half what our neighbors pay in New Hampshire, and over two times what the country on average pays in premiums.”
Healthcare911 describes itself as a “politically diverse ‘coalition for impact’ made up of business leaders, union workers, healthcare providers, Republicans, Democrats, Progressives, and Independents. We are committed to data-driven discussion that compares healthcare costs across the region and nation,” according to it presser.
It continues, “Vermont’s premiums are the most expensive in the country, creating a healthcare emergency for our businesses, public institutions, private and public sector employees, farmers, taxpayers, and anyone living in Vermont.”
Highest premiums and hospital closures
VDC has covered the rising premiums including a new report that indicated Vermont will have the highest insurance premiums in the nation.
It states, “Vermonters will pay for premiums an average of $1,157 per month, another new national high mark. The next highest is Alaska at $1,088 and then New York at $1,038. For 2024 Vermont was second in the nation for highest premiums, at $908 per month versus $948 for Alaska,” VDC wrote in December.
Financial pressures on healthcare have resulted in some speculation that hospitals could close. The Green Mountain Care Board Chair Owen Foster had to issue a clarification.
“The Oliver Wyman report does not mandate any changes at any Vermont hospital. Rather, it provides a projection of Vermont’s financial headwinds and provides options for local communities and hospital leaders to consider.”
Charity Care?
VDC asked if Charity Care was a viable alternative to the health insurance model. Charity Care means a patient visits the hospital when they need service and pays for that visit only, and the bill is adjusted according to the patient’s income.
Pearson answered, “What sets us apart in this state is we’re in this trend [of higher premiums], people who go without insurance have Charity Care in every state in the country so I don’t think we are seeing that as a driving factor.”
The author is a writer for the Vermont Daily Chronicle