By Michael Bielawski
A presser today by the Green Mountain Care Board has issued a dire warning about the state of Vermont’s healthcare system. It states, “Unless immediate decisive action is taken to transform Vermont’s health care system, it will be financially unsustainable by 2030.”
It also warns that next year’s premiums are expected to be up more than 20%.
This is what they’ve concluded after they hired consultants to do a 10-month review of their current system.
The report appearing on VermontBiz largely highlights talking points from a meeting that more than 60 people attended to hear more from the GMCB on July 1 at Brooks Memorial Library in Brattleboro.
“Worst healthcare costs in the country”
Regarding the meeting, it states, “Opening comments noted that Vermont has the ‘worst health care costs in the country.’ The average lowest-cost Silver-level premium health insurance plan in Vermont is over twice as much as the national average.”
There have been several other such meetings across the state during July. They have been hosted by consultant Dr. Bruce Hamory who is an infectious disease specialist and chief medical officer for the consulting firm Oliver Wyman.
The meetings are a requirement of Act 167 passed in 2022 which requires “sustainable, affordable, and equitable future for Vermont’s 14 hospitals and health care providers in general” according to the presser.
The consultants say they had more than 100 meetings with various healthcare centers. Their report concluded, “hospitals’ financial health, particularly for rural hospitals, is poor and continuing to deteriorate.”
Some notable participants at the Brattleboro meeting include Brattleboro Memorial Hospital CEO Christopher Dougherty, GMCB Chairman Owen Foster, JD, David Merman, MD, GMCB member, and several other prominent healthcare professionals. Legislators included Windham County state Democrat Sens. Wendy Harrison and Nader Hashim, and Rep. Leslie Goldman, D-Bellows Falls.
21-24% rise in premiums?
The GMCB has issued another document that estimates a 21% and 24% rate increase for premiums for individuals and small groups respectively. This data can be found on page five of the document, which attempts to explain how and why rates could go up so much.
According to page 6, these are not the originally proposed rate hikes. It further states that they need this money to maintain solvency.
It states, “We agree with the statements that “the original proposed CTR, and therefore the rate, is insufficient and must be significantly adjusted upward” and that “any downward adjustment to the filing’s rate components that are not actuarially supported, . . . will reduce BCBSVT’s surplus and negatively impact its solvency.”
The GMCB presser similarly suggests that healthcare costs are rising sharply. It states, “Vermont healthcare costs in 2023 and 2024 have risen nearly 29%, and forecasts for 2025 estimate increases of over 20%.”
Hospitals to close?
The report notes that since 2005, 192 hospitals have closed across the nation, most of them since 2010. It further states that all of them have been “rural hospitals or those isolated from other facilities.”
It goes on about what this means for Vermont. It states, “With nine of its 14 hospitals operating at a deficit, Vermont may look better than some parts of the country, but it will also be looking at hospital closures if changes aren’t made quickly.”
Health insurance not required, but your care is
Those without health insurance can still get health care via a conventional pay-per-service model. Often referred to as Charity Care, federal law requires hospitals receiving public funds to offer income-adjusted care to those without insurance.
The author is a writer for the Vermont Daily Chronicle