House Health Care committee reviews revised reference-based pricing bill, schedules 1 p.m. vote

The House Health Care committee on Friday reviewed a revised draft of S.190 that would direct the Green Mountain Care Board to use reference-based pricing to lower hospital prices and set interim budget targets for fiscal years 2027–2029.

The bill’s sponsor, speaking as chair of the committee, said she removed a provision aimed specifically at teachers’ health benefits from the draft but kept the reference-based pricing language. "We re looking to make our health care system in Vermont more affordable and sustainable and ensuring that everyone has access to high quality health care," the chair said.

Jen Harvey of the Office of Legislative Council walked members through the new draft, explaining that the bill would authorize the board to use reference-based pricing and included a transitional approach that for FY27 could direct an amount equal to 3.5% of the hospitals' combined commercial net patient revenue toward reducing commercial reimbursement rates. Harvey also described caps in the draft tying allowable hospital commercial reimbursement to percentages of a Medicare-adjusted base rate…