Health Care

Payroll tax would fund proposed Medicaid expansion

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By Michael Bielawski

A bill that would initiate a potentially massive expansion of Medicaid for the Green Mountain State has been brought forth by four majority party senators. According to its text, its proponents want it with or without federal money and they want a full expansion to cover all Vermonters.

“This bill proposes to provide Medicaid-equivalent coverage to all Vermonters by age bands over time, regardless of household income,” the text of S.1 states.The bill is sponsored by Sens. Rebecca White, D-Windsor, Martine Gulick, D-Chittenden Central, Sen. Anne Watson, D/P-Montpelier, and Sen. Tanya Vyhovsky, P/D-Chittenden-Central. It’s been referred to the Committee on Health and Welfare.

Under S 1, if the federal government won’t pay for Medicaid, Vermonters will foot the bill.

“It would direct the Agency of Human Services to seek approval for federal financial participation in the expanded coverage, with the State paying the full amount if the federal government does not approve the request,” it states.

For now, no formal estimate is given for what such an expansion in public medical services would entail.

“The bill would direct the Agency of Human Services and others to develop cost estimates for the Medicaid-equivalent coverage and a detailed implementation plan,” it states.

A payroll tax?

The bill notes they seek an estimate costs with and without a payroll tax. The payroll tax was created last session to subsidize child care. Opponents expressed concern it could be expanded to fund other needs and wants.

It states, “The bill would also require the Department of Taxes to report on potential payroll tax design options to support the State’s financial obligation in providing the Medicaid-equivalent coverage, both with and without the federal funding.”

“All Vermont residents shall be eligible”

The bill would incrementally phase in different age groups under Medicaid coverage. It would cover individuals up to age 26 beginning in 2029. Next, 2030 would include “individuals who are not less than 55 years of age and not more than the age of eligibility for the federal Medicare program.”

By 2031 those “not less than 45 years of age and not more than 54” would be included, and by 2032 those between 35 and 44. By 2033, “all Vermont residents shall be eligible for coverage.”

Global Commitment to Health waiver?

Another part of the bill suggests that existing Vermont law concerning eligibility for public healthcare needs to be modified.

It states, “On or before September 1, 2025, the Secretary of Human Services shall request approval from the Centers for Medicare and Medicaid Services to amend Vermont’s Global Commitment to Health Section 1115 Demonstration Waiver to make all Vermont residents eligible for hospital, medical, dental, and prescription drug coverage equivalent to coverage in the Vermont Medicaid state plan, regardless of income, as set forth in 33 V.S.A. § 1851.”

Again it is clarified that the public will pick up the bill if the federal government cannot.

“In the event that the Centers for Medicare and Medicaid Services does not approve Vermont’s request for federal financial participation in providing Medicaid-equivalent coverage to all Vermonters, regardless of income, the coverage shall be funded with State-only dollars,” it states.

Healthcare costs already strained?

Vermont’s healthcare costs are already under pressure as it faces the highest health insurance premiums in the nation and potentially daunting hospital infrastructure projects, with the potential closures of hospitals looming.

A report by KFF, a healthcare think tank, states, “Four consecutive years of rate increases led to a 15% increase in health insurance premiums since 2022. Residents of 42 states will see higher premiums in 2025 – driven by the rising cost of medical care around the country.”

Last session’s Medicaid expansion bill saw Planned Parenthood seek inclusion of abortion and transgender services. It is unclear whether the same request will be made this year.

The author is a writer for the Vermont Daily Chronicle


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16 replies »

  1. NO, NO, NO, NO, NO, NO, MORE TAXES. Get those free loading ppl off the system. NO MORE TAXES. Stop with the payroll tax, it’s NOT VERMONT LEADERS $. We are being taxed and worked into an early grave. WE ARE SICK OF PAYING THIS STATE, TAXES. We truly can’t wait to move out of this horrific state. But we can’t save because of TAXES!!!!! How about you all drop your salary (for life) increases? How about you drop ALL your assistants? How about we stop paying for the Mayors FOOD for her family. How about all the hidden costs the ppl in VT don’t know about (but hopefully will). ENOUGH WITH THE TAXES ALREADY

  2. Yikes! Keep in mind that the .46% payroll tax for government daycare only covers a portion of the total proposed program, AND the Dem/Prog fantasy of a Paid Family Leave program also calls for funding via the payroll tax.

    • let’s add to the daycare payroll tax, that no state employee with the state union has to pay it!. you know the largest employer in the state. just because it was not negotiated in your union contract, outrageous. an why can’t any bill to raise taxes make them a higher tax rate on all state legislators?

    • Yikes? This idiocy is way more than Yikes! peter shumlin’s plan was scrapped by himself in 2014 after spending 2 million dollars to find out it required an 11.5% payroll tax PLUS additional up to 9.5% income tax topping out at $27,500 for a family of 4. shumlin’s plan assumed employers would “pay” the payroll tax.
      https://vtdigger.org/2014/12/17/shumlin-says-single-payer-not-affordable-now/
      If the idea couldn’t work a decade ago, who could possibly think it could work now, after 10 years of meddling with health care by progressive democrats.

      If the GWSA doesn’t destroy the Vermont economy, this certainly will.

  3. Shortsighted and blind to the facts . The bill is sponsored by Sens. Rebecca White, D-Windsor, Martine Gulick, D-Chittenden Central, Sen. Anne Watson, D/P-Montpelier, and Sen. Tanya Vyhovsky, P/D-Chittenden-Central. That tells me all I need to know.

  4. Time for Scott to get his man pants on for starters. Also I used to make donates to worthy organizations yearly. NOT ANYMORE! I’m done with this nonsense.

  5. Did not take long to look at the payroll tax again for revenue. We knew this would happen. So glad we have enough Republicans to stop this one.

  6. Clearly, the Dem/Progs didn’t get the message from the November elections. On the bright side, if they keep on this way, it will bode well for another big gain for Republicans in ’26.

  7. Where is the Republican plan to cut spending? There is a plan..?

    How much money is being cut from spending and current budget?

    How much lower will be next year’s budget?

    Which legislator is compiling and reporting the savings?

    We didn’t vote you in to keep current spending levels.

  8. Who wants to bother with the work of cutting taxes and make government smaller and more affordable when we can just tax people into oblivion to be our happy little minions. The government can give the people day care and medicaid, but it will cost our homes, livelihoods, and independence.

    It comes with the cost of FREEDOM and UNITY caving and giving way to Governmental tyranny. Anyone ever heard of the TEA PARTY? Or did the history books get erased? Our Constitutional heritage is unique in all of mankind’s history.

    If you need a refresher – Federer, is one of the more prolific renown historians. I recommend starting at timestamp 3:12 for an amazing recitation and commentary of the governances over mankind since the beginning of recorded history

    turnstile=0.ToUiOJtthZluAMZKxK08RW_TEAIH_F0_ek5I4VDyN_KUCJRJHaUU1MdL21IVGBgUwvvSTIQpC7Jcms_OFNuxZe-46EqG6dgQnMk71WDqErft8Jex2LBwksf1xjytza1wGfY9DjrILpe4ncZIFGs0JI13HE18hWkJn7hY6jnjTInFPUsPlcNfGb5qd427FNt5OHqIp1kQovkV9bIy71LLA3v7wOYyTD64wsyUUgEDZqG1m_btEC42GXbTB1gwFupgL_TgWOOuPTExmUakdGi_2kQxB6k854YdqeRpaUHRzY1JHSfABQ0ZEcaPrb_1oF8YzTiVBS1ykh–hth-NkMV87TzQIlQOh6Ne04fNQ2LqH00zfkX43sL7cafrC0uILCLC8IjLfhJpljuSnKFR_n-zN7vQ7ctVRLxAk6TvD4NAHklnZWNjNZgbfDAdD4d3wpAzr6bvY0T6q-ikXe8nRpH5WMQVbgu11oUPUQ_HtMtpAmmKLt0GzuzOuU8Kj-CPVuJnF9H4mr1MZO5fN69l90wxpCMZlcfZ8Ha1Rvajb9WTKfUkSxBPDeuM1X8r-O8ysarK4WpqyoMzTGLmAVfg8H0pZHDImBjBAHaChOkND0y5X8SYKSVOmTnUS1DR67NCEbFtt2u853gDFKChw6qRhFDTxI4cEo_nNpHRGO8Tl0ZbesArYG8R2Eo-QXHzxu4AwblwttoqRITXODUHb564GBNniWQe9XO2ZAcamcZqFzkkiICLCFfGqIQQFGUrJ4EL9D_GftTxXYDmudseHjORIwQlGC9YRCM_nJz-3W61oXQU-aSMjg4w9DwOIAVONwy2Ts2YcPHpjHqL4OA9Ttr9orskUp3nImkVw_cb-wBdnElHoo.SFwA4JFNnQkTJolM7B0vVQ.ab50f9f3b157d2a9fd05b0597e2b7ee8893f4d014a0877b7384f7e14288162bb..

  9. Good thing in VT there are payrolls still to be taxed, otherwise, how we would skim more blood from the rocks.

    Great to have the vision to open up a the cracks a-bit on new taxes with the previous childcare tax.

    Once in, it tough to let go when spending someone else’s money.

  10. Not only does a working person pay for medical insurance from their pay as well as FICA, the State will now ding that pay further to pay for all State welfare recipients, of which there are more of than employed with benefits? The Vermont Legislature has officially designated working Vermonters as indentured servants. Your labor is for their purposes, their programs, their agendas. If you are employed in Vermont, your labor is not for your benefit or prosperity at all. It is for their kingdom of plutocracy, their dead weight voter base, their dead weight non-profits, NGO’s, Stalin loving, CCP mirroring, society destroying Hellhole. Given over to reprobrate minds indeed. Rebuke them all. A den of thieves gone mad.