Medical insurance fund shows $36 million deficit; budget includes $18.5 million transfer and premium increases

At the Feb. 5 Senate Appropriations Committee meeting, Adam, commissioner of finance, told committee members the state's self-insured medical insurance fund ended fiscal 2024 with an approximate $36,000,000 deficit and is being addressed with both a one-time general fund transfer and higher premiums.

"If you look in the most recent ACFR ... you'll notice that the deficit in the medical insurance fund, for the end of our most recent fiscal year, fiscal 24 was about $36,000,000," Adam said. He described the problem as a combination of under-collection of premiums and rising utilization, particularly pharmacy costs.

The nut of the administration's approach is twofold: "there was an $18,500,000 general fund transfer into the medical insurance fund" in the budget adjustment and the state implemented a premium increase for employees and the employer. "Premiums for, the employer, in this case, the state of Vermont and the employee ... went up 15% for the first paycheck in January," Adam said,…