The House Health Care Committee has taken a critical step to protect small businesses from absorbing the higher costs associated with the individual health insurance market by ensuring the small group and individual markets remain permanently unmerged.

This issue has been a focus of the Vermont Chamber for several years. In prior sessions, the Vermont Chamber helped advocate for the markets to remain unmerged, as long as enhanced federal subsidies were available to stabilize the individual market. With those subsidies set to expire in 2025, the markets were scheduled to merge this year, which would have resulted in even higher premium increases for small businesses.

Testimony from the Department of Vermont Health Access, health care organizations, and the Vermont Chamber emphasized the importance of maintaining this separation. Keeping the markets separate helps protect small businesses from potential rate increases caused by the individual market, providing an upside in an otherwise difficult year for health insurance premiums.

The committee unanimously supported H. 35, which codifies the unmerged markets. Their swift action demonstrates a strong commitment to protecting Vermont’s small businesses and their ability to offer quality health insurance.

The Chamber will continue monitoring the progress of H. 35 through the House and into the Senate, advocating for solutions that support Vermont’s business community. Though this is an important step, a considerable amount of work remains to be done do if health care costs are to be addressed this year.