House advances bill giving Green Mountain Care Board limited power to lower hospital rates amid insurer strain

The Vermont House advanced H.482 to third reading on a motion from the Committee on Health Care, sending to the full chamber a bill that would allow the Green Mountain Care Board to lower reimbursement rates paid by a domestic insurer and to appoint an independent observer for hospitals in narrowly defined circumstances.

The bill, presented to the House by Representative Black of Essex for the committee, was framed as an emergency tool to address the solvency risk facing Blue Cross Blue Shield of Vermont. "Without that infusion of capital ... Blue Cross Blue Shield would be below the 150% threshold," Representative Black said, noting the insurer recently borrowed $30,000,000 at an 8% interest rate to shore up its risk-based capital position.

Why it matters: Committee members said a Blue Cross insolvency could leave more than 70,000 Vermonters without commercial coverage and threaten payments to hospitals and community…