A System at the Breaking Point: Confronting the Crisis in Vermont’s Healthcare
Legislative hearings in both the House Health Care Committee and Senate Health and Welfare Committee have brought sharp focus to the growing instability of Vermont’s healthcare system. Testimony from providers and advocates painted a clear picture: the system is “speeding toward a cliff,” and without swift intervention, employers and their employees will bear the brunt of the fallout.
A potential 20% insurance premium increase, following three years of double-digit increases, is just one piece of a worsening financial puzzle. Businesses across the state would face higher costs with few alternatives for affordable coverage. However, the implications extend well beyond higher premiums: Vermont faces a $300 million loss in Medicaid funding, as well as the potential loss of one or both of its commercial insurance carriers. The exit of either—let alone both—would be catastrophic. Businesses would be left with drastically limited options, and the broader employer-based insurance market could collapse under the weight of increased risk and cost.
Meanwhile, regional hospitals are also at risk. The possible closure or downsizing of local facilities would force employees to travel farther for care, create delays in treatment, and reduce the quality and availability of health services—key concerns for employers striving to maintain a healthy workforce and recruit new employees. While the Senate-passed healthcare reform bill contains elements of long-term structural reforms, testimony made clear that it fails to address the immediate challenges now threatening the system’s solvency.
Legislators also highlighted those who hold responsibility for charting a path forward. Rep. Lori Houghton stressed the importance of clarifying roles, noting that not everyone involved has the authority to enact changes, and that Vermonters deserve to know who to hold accountable. Decision makers including the Governor, his administration, those in the Legislature, as well as the hospitals, insurers, and the Green Mountain Care Board, are all responsible for making challenging decisions to quickly stabilize the system.
The Vermont Chamber remains deeply concerned about the ripple effects this crisis could have on the state’s economy. Without short-term interventions to stabilize costs and coverage, employers may face untenable benefit expenses, workforce health challenges, and increasing difficulty recruiting and retaining employees. As these critical policy discussions continue, the Chamber urges all decision makers to prioritize immediate action to prevent collapse.
