Senate committee hears divided testimony on H.482 to let Green Mountain Care Board adjust hospital rates to shore up Blue Cross Vermont

Senate Health and Welfare Committee members heard hours of testimony April 10 on House Bill H.482, which would permit the Green Mountain Care Board, in consultation with the Department of Financial Regulation (DFR), to adjust hospital reimbursement rates for a domestic health insurer facing an acute solvency threat.

DFR Deputy Commissioner of Insurance Emily Brown told the committee “DFR is the primary and sole financial regulator of insurance companies who are domesticated in Vermont.” She said the bill’s trigger is a risk-based capital (RBC) ratio at or below 150 percent and that the change would target hospitals that have “more than 135 days cash on hand and meet other financial metrics.” The intent, she said, is to preserve continuity of coverage if Blue Cross Blue Shield of Vermont (BCBSVT) faces an immediate solvency risk.

The proposal drew a direct appeal from Don…