House orders third reading of bill to unmerge Vermont’s individual and small-group insurance markets

Representative DeMar of Enosburg reported to the House that H.35 would permanently unmerge Vermont’s individual and small-group health insurance markets, undoing a temporary merger in place since 2022, and require carriers to set premiums for the individual market separately from small-group plans.

Representative DeMar described multiple statutory edits in Title 33 referenced by the bill: updates to definitions of “qualified employer” and “small employer,” repeals of outdated implementation language for the Vermont Health Benefit Exchange, clarifications about what individual information the exchange must provide to the U.S. Department of the Treasury for advanced premium tax credit determinations, and new requirements for agents and broker procedures. He said the act would take effect Jan. 1, 2026.

A member from Northfield, speaking on the floor, framed the change as a policy shift with financial implications. The Member from Northfield said the original merged market had “helped stabilize and reduce the amount of increases that the individual market could have otherwise seen” by spreading risk across a larger pool, and warned that if federal subsidies are not extended, people in the individual market—especially those not eligible for subsidies—could face higher costs. The member added, “I do support the bill, and I encourage members' support.”

Representative DeMar said witnesses who testified in committee included the deputy commissioner (agency not specified in transcript), legislative counsel, the chief health care advocate and industry representatives; the transcript records the committee’s reported vote as “1100 all in favor.” On the floor the House asked if the bill should be read a third time; the ayes were called and third reading was ordered. The bill will return for further floor action.