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Committee asks DFR to examine insurer sustainability and regional options including reinsurance
Summary
The committee asked the Department of Financial Regulation to report on preserving domestic insurer sustainability — particularly Blue Cross Blue Shield — and to consider reinsurance and possibly regional options; members said more discussion is needed.
During the Jan. 26 conference committee meeting, members directed attention to section 11d, which asks for a report from the Department of Financial Regulation on preserving the sustainability of domestic health insurers in Vermont and the potential use of reinsurance.
A committee member framed the focus narrowly: "This is focused right now, at least on Blue Cross Blue Shield. It's really that is the domestic health insurer and how do we preserve their sustainability." Another member asked whether the DFR should also look at "other, perhaps, regional options," such as cross-state arrangements, to bolster insurer viability.
Members acknowledged the subject is complex and distinct from other sections and asked the DFR to consider whether regional solutions or other mechanisms could support a small domestic insurer. The transcript records that the matter will be revisited and that the committee intended to return the following morning to continue the discussion.
The transcript does not include DFR testimony or a formal set of recommendations; the committee asked staff to follow up and to schedule additional time for the DFR discussion in a subsequent meeting.
