Vermont’s Regulatory Environment and Aging Demographics Add to Growing Cumulative Impacts Facing Vermont Businesses
Health insurance providers have submitted commercial rate increase proposals to the Green Mountain Care Board for 2025. Blue Cross Blue Shield of Vermont is requesting a 24% increase, while MVP is seeking a 9% increase. These proposals follow two consecutive years of double-digit rate hikes, creating an unsustainable financial burden for Vermont’s businesses and their employees.
For businesses already struggling with numerous financial challenges, including supply chain disruptions, a new payroll tax, significant property tax increases, inflation, and labor shortages, these additional health care cost pressures are part of a bigger cumulative impact pushing some companies to a breaking point.
The rising cost of healthcare and insurance in Vermont is driven by several factors, including increased utilization, higher prescription drug costs, staffing challenges, and other economic pressures. The 65+ demographic uses healthcare services at a much higher rate, and with 100,000 Vermonters expected to join this age group in the next decade, costs will continue to rise.
Addressing Vermonters’ healthcare needs affordably is a complex challenge without easy solutions. Regulators will need to carefully review hospital budgets and insurance rates while considering the burdens businesses are facing. If implemented, these proposed insurance increases would exacerbate existing hardships and harm the economic health of our state. Health care coverage is a crucial component of the wage and benefit packages employers offer. As insurance premiums rise, employers face the tough decision of trying to absorb these additional costs or passing them on to employees; neither option is desirable.
The Green Mountain Care Board is accepting public comment on these rate increases. We encourage you to submit your feedback here.
