Senate approves reference‑based pricing bill after debate on rural hospital impacts

Vermont Senate · April 1, 2026

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Summary

S.190, addressing reference‑based pricing and hospital outsourcing, passed after floor amendment and debate about impacts on rural hospitals; vote tally was 23‑6. Supporters said it will lower costs; critics warned of potential cuts and estimated local hospital losses.

The Vermont Senate passed S.190 on third reading after debate over reference‑based pricing rules for commercial payers and a floor amendment adding report recipients.

Senator from Addison offered a small amendment to add the finance and ways and means committees as recipients of reports required by the bill. Senators debated the bill’s potential effects on hospital finances: the senator from Rutland said the Rutland Regional Medical Center estimated the bill would cost the hospital about $13,000,000 annually and could force cuts to subsidized services such as diabetic care, women’s health and some emergency services. Senator Jim Goodes argued the bill would align Vermont with other states and create mechanisms allowing hospitals to apply to the Green Mountain Care Board for rate adjustments to protect access and sustainability.

Floor discussion acknowledged the complexity of cost shifting in health care and emphasized the Green Mountain Care Board’s role in reviewing and, when warranted, approving adjustments for certain service lines to avoid access problems. Supporters framed the bill as a step to reduce the burden on workers and small businesses who ultimately finance health care through premiums and out‑of‑pocket costs.

After a roll call was requested and taken, the secretary reported 23 votes in favor and 6 opposed; the Senate passed S.190.

What’s next: with passage by the Senate, the bill proceeds to the usual enrollment/conference steps as required by the legislative process; sponsors stressed continued oversight to ensure rural providers can seek relief through the Care Board.