Provider groups ask for 3.5% inflationary increase to avoid cuts to home and community care
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Summary
Vermont Care Partners and the Vermont Health Care Association asked the committee for a 3.5% inflationary increase for home‑ and community‑based providers, warning of network instability, cash‑on‑hand shortages and proposed cuts totaling about $4 million across designated and specialized service agencies in the governor's budget.
Amy Johnson of Vermont Care Partners and Helen Laban of the Vermont Health Care Association urged the committee to include a 3.5% inflationary adjustment in the FY27 budget for home‑ and community‑based service providers.
Johnson described systemwide pressures: network cash‑on‑hand has fallen and some agencies reportedly have as few as five days of cash; the governor's recommended budget included no inflationary increases for DAs/SSAs and Johnson said $4 million in additional cuts were proposed to the provider network. She stressed that a 3.5% increase was a floor to prevent further functional cuts, and outlined programs at risk including elder care clinicians (in‑home clinical services for older Vermonters) and Reach Up mental‑health partnerships that provide non‑billable, low‑barrier supports.
Laban, representing assisted living, residential care homes and nursing facilities and speaking for the Long Term Care Crisis Coalition, said demographic trends (the state is aging toward 1 in 3 residents age 60+ by 2030) and the Age Strong Vermont plan reinforced the need to keep reimbursement rates from slipping. She said stakeholders had reached consensus on 3.5% as the minimum amount to remain functionally even with projected market increases.
Committee members asked for legislative estimates on the dollar impact per 1% increase; staff said they would supply the numbers. Members also referenced ERC (enhanced residential care) restoration rates used as a baseline for the 3.5% figure. No formal action was taken during the session.
