Senate orders third reading on bill to unmerge individual and small-group insurance markets

The Vermont Senate ordered third reading on H.35 after the Finance Committee reported unanimous support for permanently separating the individual and small-group health insurance markets.

Senator from Washington, reporting the committee recommendation, said the bill would move the policy from session law into permanent statute. “This is the last time This will move it from session law to government law,” the senator said on the floor.

The senator explained the two markets at issue are individual consumers and small businesses (generally firms with 100 or fewer employees) that buy coverage on the exchange. According to the report, the individual market has historically been smaller with higher costs, while merging it with the small-group market contributed to higher rates for some small employers. The committee noted prior temporary separations tied to enhanced federal subsidies and described the current measure as a permanent separation backed by state regulatory stakeholders.

The floor explanation cited support from the state's health advocate (referred to in the remarks) and regulators. The Finance Committee reported a 7–0–0 vote in favor and asked the full Senate to order third reading; the Senate ordered third reading by voice vote.

The bill will return to the Senate floor for third reading, where members will take a final vote on passage.