Statement from the Office of Governor Phil Scott on Green Mountain Care Board Rate and Budget Reviews

Montpelier, Vt. - Governor Phil Scott's office today released the following statement regarding recent decisions by the Green Mountain Care Board (GMCB) to significantly reduce the rates requested for certain insurance plans, and their approach to the hospital budget decisions they will soon make:

The Green Mountain Care Board's focus on reducing costs in Vermont's healthcare system is important and appreciated. A stable and affordable healthcare system is vital to the well-being of Vermonters and to the economic vibrancy of our communities in every region of our state.

The Board's recent rejection of double-digit insurance rate increases is the first of what the Administration hopes will be a series of steps to constrain, and lower, costs across the system, which must include reductions in the cost of care to ensure the reduced insurance rates are sustainable. The Administration is a fully committed partner in making healthcare more affordable. Vermonters - and our employers - are already overburdened by taxes, unaffordable housing, high energy costs, and inflation.

The fact is, like in education, well-intentioned policies Vermonters were promised would make things better and more affordable are not working as intended, and many have become counterproductive. The status quo has allowed unacceptable amounts of administrative cost growth, unbearable pricing strategies, and perverse financial incentives and executive bonuses paid for by skyrocketing premiums.

To make healthcare more affordable, we must implement system-wide reforms that are proven to have lowered costs and increased options in other states; reduce or eliminate administrative overhead and governance structures not essential to operations; prevent exorbitant prices for healthcare services; make smart use of the federal Rural Health Transformation funding for states; and hold healthcare and insurance executives accountable for delivering the access, quality, and affordability Vermonters need. The Governor, the Agency of Human Services and Department of Financial Regulation will continue working closely with the GMCB, and other partners, through a team-oriented and comprehensive approach.

By making healthcare more affordable, the Green Mountain Care Board will play a critical role in revitalizing Vermont's county economic centers and the smaller towns around them. As they review hospital budgets, we urge the board to constrain them to the lowest responsible level. We look forward to continuing to work with the Board, and the Legislature, to strengthen our healthcare system.

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