The House Health Care Committee took up the Scott Administration’s health care reform proposal, H.585, with testimony revealing sharp skepticism from lawmakers and high stakes for employers and self-employed Vermonters navigating rising costs and limited options.

The Vermont Chamber was at the table to elevate how these policy decisions affect employers’ ability to offer coverage, compete for workers, and manage costs in a market that continues to narrow. As reflected in the 2025 Vermont Business Climate Survey, health care affordability remains one of the most significant challenges facing Vermont businesses.

Employer Impacts Frame the Vermont Chamber’s Testimony

Testimony emphasized that Vermont’s health insurance market remains constrained, with limited choice and persistent cost pressure leaving employers little flexibility at renewal. Businesses are already making difficult decisions about benefit offerings, wage growth, and expansion as premiums continue to rise.

At the same time, the Vermont Chamber acknowledged the monumental work the Legislature undertook last year to address health care costs and system sustainability. Those reforms laid important groundwork, but testimony stressed that employers are still feeling acute pressure today — underscoring the need to continue exploring additional tools that could expand choice and slow cost growth.

Association Health Plans and Other Tools Under Scrutiny

Much of the committee’s attention centered on the association health plan provisions of H.585. The Vermont Chamber highlighted Vermont’s past experience with fully insured, well-regulated association health plans, noting that limited participation did not destabilize the market but did provide additional choice for employers and self-employed Vermonters.

The committee also heard divided testimony on other elements of the Administration’s proposal, including limited age rating flexibility, site-neutral billing, and the potential pursuit of a federal reinsurance waiver. These provisions prompted a wide range of questions about market impacts, equity, and system stability, and the Vermont Chamber continues to evaluate how they may affect employers.

Committee Pushback and Administration Response

The House Health Care Committee expressed significant skepticism toward several components of H.585, raising concerns about unintended consequences and market disruption. As discussion grew increasingly dismissive of exploring alternative approaches, the Administration underscored the urgency of the moment.

Department of Financial Regulation Commissioner Kaj Sampson pointed to decades of data showing the path is unsustainable. He warned that declining to consider different options amounts to accepting a system that is not working:

“The data that’s really driving us, where we’ve been in the last 40 years and where we are today, shows us that we are not on a sustainable path… failure to entertain these different options or other options… is an acknowledgment that the path we’re on is acceptable and it simply is not.”

From the Vermont Chamber’s perspective, narrowing the range of policy tools, whether related to plan choice, payment reform, or market participation, risks reinforcing a system that continues to deliver high costs and limited options for employers and workers.

What Comes Next

As the House Health Care Committee continues its work on H.585, the Vermont Chamber will remain focused on advocating for policies that build on last year’s reforms while addressing the affordability pressures that face employers and the state’s large population of sole proprietors.

The Vermont Chamber encourages employers and self-employed Vermonters to share how health care costs and coverage availability are affecting their businesses. Employer experiences remain critical as lawmakers decide which tools — if any — to move forward. If you have a story to tell, contact us at msullivan@vtchamber.com.