Lawmakers Hear Testimony on Hospital Drug Markups, Reserves and an Amendment to Exempt Critical Access Hospitals

A committee hearing of the Vermont House Committee on Health Care on May 21 featured extended testimony about proposed limits on hospital-administered drug markups and related commercial rate actions, with witnesses and officials debating who should bear the costs and whether hospitals can use reserves to bridge a transition.

The discussion centered on draft legislation referenced in testimony as H.482 and H.266 and on how price pressure on hospitals would affect patients, insurers and hospital finances. An unidentified testifier who said they were speaking on H.266 told the committee: "I do find it cruel to charge enormous markups on life saving treatments, to patients who are incredibly sick." That witness urged the committee and hospitals to use reserves and other tools to avoid pushing costs onto cancer and chronic-disease patients.

Why it matters: Committee members and witnesses framed the proposal as a response to what one witness called “Vermont is the highest, most expensive state in The United States Of America for hospital administered drugs.” Testimony tied hospital pricing to higher patient copays, risk to local employers with self‑insured plans and market consolidation that can move care into higher‑priced hospital settings.

Key facts and figures cited in testimony

- Independent monitor for the Green Mountain Care Board: Devin Green of the Vermont Association of Hospitals and Health Systems corrected his earlier testimony, saying, "The independent monitor for the Green Mountain Care Board is up to $1,000,000." He said his prior written testimony had incorrectly combined the monitor amount…