Governor Phil Scott Vetoes Healthcare Bill S.190 in Vermont

Governor Phil Scott has vetoed healthcare bill S.190, intended to implement cost-saving measures for public school employees and individuals purchasing health plans on Vermont's Affordable Care Act marketplace. The bill sought to expedite reference-based pricing—a model linking insurer payments to hospitals with a standard benchmark, typically based on Medicare rates. This initiative was planned for all Vermont hospitals starting in 2025, pending regulatory procedures by the Green Mountain Care Board.

Scott announced the veto via a letter, emphasizing his preference to advance insurance reform through executive actions, incorporating elements from a separate proposal introduced by his administration. He expressed the importance of ensuring that savings are distributed fairly across the insurance landscape, rather than benefiting specific groups.

Representative Alyssa Black, an advocate for the S.190 initiative, expressed her disappointment, highlighting that the bill was a collaborative effort with input from the governor's administration. The focus was on addressing costs impacting property taxpayers and those facing higher premiums due to the loss of federal healthcare subsidies.

Kaj Samsom, commissioner of the Vermont Department of Financial Regulation, highlighted the challenges of concentrating significant hospital revenue reductions on a small segment of the population. Despite the veto, the Green Mountain Care Board still holds the power to adjust hospital budgets to achieve savings without targeting specific insurance markets.

In his response, Governor Scott reaffirmed the board's ongoing efforts to manage hospital revenue reductions, noting substantial revenue cuts in recent years that have mitigated premium increases. He advocated for a broad application of savings to benefit various payers within the healthcare system.

Scott mentioned additional reforms from the proposed bill H.585, which sought to introduce changes such as varied premiums based on age and collective insurance purchasing for small businesses. Despite broad legislative support, H.585 did not pass. Healthcare advocate Mike Fisher recognized the enduring commitment to reducing insurance rates, noting that the governor's veto doesn't halt efforts to implement reference-based pricing according to previous legislation.