Day: July 10, 2026

Governor Phil Scott signed Executive Order 05-26 this week, launching the first phase of a Healthcare Affordability Initiative aimed at expanding insurance options and lowering costs for Vermonters and employers.

The immediate actions matter, but the larger signal may matter more: the Administration is making clear that Vermont’s current approach to health insurance affordability is not producing sustainable results and that broader statutory reforms will be needed in 2027.

For businesses, this is a familiar pressure point. Health insurance costs continue to affect hiring, retention, wages, and long-term planning. Employers need more affordable and predictable options, especially small businesses that often have the fewest tools available to manage rising costs.

The Executive Order directs state agencies to begin work under existing authority on several fronts, including preparing a federal Section 1332 waiver, reviewing age rating rules, revisiting stop-loss and small-business coverage options, evaluating tax incentives for employers offering coverage, and encouraging continued work on reference-based pricing and system-wide savings.

This is not a full solution, and the Administration acknowledges that. Many of the most consequential changes will require legislative action next year. But it does mark a notable shift toward reexamining the policy structures that have made Vermont an outlier compared to neighboring and peer states.

The Vermont Chamber has consistently advocated for healthcare reforms that address affordability, expand employer options, and strengthen Vermont’s overall business climate. As this next phase develops, we will remain engaged with the Administration, regulators, legislators, and members to ensure the business community has a strong voice in shaping practical reforms.

The key question heading into 2027 will be whether policymakers are willing to move beyond acknowledging the cost problem and toward structural changes that improve affordability for employers, workers, and families.