House Appropriations hears Department of Vermont Health Access budget pitch; DEVA seeks staffing, system funds and contract changes

The Vermont House Appropriations Committee on Feb. 4 heard a detailed FY2027 budget presentation from the Department of Vermont Health Access (DEVA), which requested new staff to handle federal HR 1 eligibility changes, one‑time system funding and targeted support for struggling providers.

DEVA presented its budget request and strategic priorities to the committee, with Deshaun Burrows (identified in testimony as "Deshaun Burrows, feedback commissioner") telling lawmakers the agency had conducted an internal "priorities refresh" focused on provider network adequacy, population health and operational modernization. "Our kind of 4 priorities this year were around housing, mental health, and substance use, the, health care in terms of affordability, quality, and sustainability," Burrows said during opening remarks.

Why it matters: federal changes driven by HR 1 will alter eligibility processes and require new systems and staff to meet more frequent renewals and other rules. DEVA estimates about a 30% increase in eligibility‑unit workload and asked for 12 new positions to implement the changes on schedule.

What DEVA asked for and why - Staffing: DEVA asked for 12 positions tied to HR 1 implementation. Deputy Commissioner Addie Stromlo said the breakdown is eight eligibility workers, one noticing‑team position, one IT testing position and two communications/outreach roles to manage increased renewals and notices. Stromlo said hires would be onboarded in summer to meet a January 2027 operational deadline.

- One‑time systems funding: DEVA estimated one‑time FY27 costs for HR 1 related system changes at about $5,000,000 and said federal HR 1 grant funding would cover a portion; DEVA noted outstanding questions with CMS about whether outreach costs would be eligible for federal match.

- Provider stabilization: DEVA requested $2,000,000 one‑time to continue a provider stabilization fund. The agency reported 28 applications over the prior year, eight awards totaling about $3.27M and seven pending applications; DEVA said it had reserved roughly $2.7M in one case under negotiation.

- Contract and program changes: DEVA proposed ending its contract with the Vermont Legal Aid Medicare advocacy program after an internal efficiency review; staff said the contract’s return on investment had declined over time and that contractual corrective measures were not implemented. The agency also proposed discontinuing a temporary per‑diem for mental‑health extended emergency department stays (effective July 1) after review, eliminating modest dental incentive payments that did not increase access, and raising prescription co‑pays to $4 (preferred)/$8 (nonpreferred) with exemptions and a 5% cap for vulnerable groups.

Questions from lawmakers Committee members pressed DEVA on the Legal Aid contract’s timing and performance, noting the contractor had recently signed a multi‑year agreement while the agency had included the contract among proposed cuts. Burrows described historical ROI figures and said that while corrective action language existed in the contract, it had not been implemented. "If the proposal is to remove the contract from operating in the future, then that wouldn't be something that we will do," Burrows said, explaining the cancellation would require a complete rebuild of the arrangement.

Lawmakers also requested clearer, plain‑language breakdowns and year‑over‑year comparisons of caseload and utilization drivers. DEVA agreed to provide more accessible narrative summaries and to supply more granular data by service category over multiple years.

Other technical and program items DEVA outlined IT contracts (Medicaid management information system held by GainWell; Deloitte for the Medicaid data warehouse; Oracle licenses) and said it is proposing a $5,052,000 general fund increase for the Maximus call center. DEVA also proposed ending its HEDIS contract because the Medicaid data warehouse can calculate required measures.

On school services, DEVA proposed restructuring school‑based services administration into DEVA while Agency of Education retains educational policy roles; DEVA requested one additional business‑office position to support that shift.

What was not decided The hearing was informational; the committee did not take formal votes on DEVA’s requests. Several committee members asked for follow‑up materials, including clearer budget tables, service‑level utilization trends and the detailed criteria DEVA uses to evaluate provider stabilization applications.

What comes next Committee members said DEVA and the House health‑care committee will follow up on technical questions. The Appropriations Committee adjourned DEVA’s segment and will resume later in the day with the Agency of Education.

Representative and staff sources for this report include testimony and exchanges during the Feb. 4 House Appropriations Committee meeting with DEVA.