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Sponsor withdraws amendment to lower patient financial-assistance threshold from 400% to 300%

April 19, 2025 | Health Care, HOUSE OF REPRESENTATIVES, Committees, Legislative , Vermont


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Sponsor withdraws amendment to lower patient financial-assistance threshold from 400% to 300%
Lawmakers discussed — then the sponsor agreed to withdraw — an amendment that would have reduced the income threshold for patient financial assistance and eligibility for medical-debt repayment from 400% to 300% of the federal poverty level.

The amendment, explained during the meeting, would have amended "patient financial assistance policy language in Title 18" and aligned eligibility for a proposed medical-debt repayment program under S27 to a 300% federal poverty level standard. "Taken together the, the amendments, as far as the financial eligibility piece would have eligibility for the debt repayment under medical debt repayment under S27 go up to 300% of the federal poverty," the presenter said during discussion.

The proposal drew immediate questions from other members about why the 400% threshold — commonly used in federal health-care tax-subsidy contexts — was being changed. "I'm still I'm trying to understand why you're suggesting lowering the threshold from below 400%...the federal government has made policies with those thresholds for a reason," one member said.

Colleagues raised practical and equity concerns. Laurie, who spoke against the change, said, "I have real concerns if we're changing a statute we passed in a previous session with absolutely no testimony on that. And I will be voting no on this." Another member noted that 400% of the federal poverty level equates roughly to a household income of about $62,000 for a single person in 2025 and about $104,000 for a three-person family, saying such households still face affordability pressures.

During discussion some members suggested alternative approaches instead of changing the threshold: negotiating larger reductions when buying medical debt, or exploring revenue mechanisms through ways-and-means processes so higher earners could help fund expanded assistance. "I would hope that the treasurer and the company that that they contract with can use negotiations to get the best possible deal to buy off medical debt," one lawmaker said.

After the back-and-forth, the member identified in the transcript as Mari said she would withdraw the amendment on the floor. "I I mean, at this point, based on the conversation, I'm I'm fully willing to just withdraw this," she said. Meeting participants confirmed the sponsor would withdraw the language and no formal vote on the amendment was recorded in the transcript excerpt.

The discussion clarified two technical points raised during the meeting: (1) the amendment language would have changed the minimum 40% patient discount in Title 18 for those with incomes currently between 250% and 400% of the federal poverty level to instead limit that discount to those at or below 300%; and (2) it would have set a 300% eligibility ceiling for the medical-debt repayment measure referenced as S27. The transcript did not record any final action on S27 itself, nor a floor vote on the proposed amendment after the sponsor's withdrawal.

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