Owen Foster, chair of the Green Mountain Care Board, recently made headlines with his statement regarding the approval of double-digit increases in health insurance premiums for individual Vermonters and small organizations. This decision marks the third consecutive year of such increases, affecting approximately 70,000 people who purchase their health insurance plans on Vermont Health Connect.
The approved premium increases for 2025 will impact both individual and small group plans available on the state-run Affordable Care Act marketplace. Blue Cross and Blue Shield of Vermont will be allowed to raise individual premiums by 19.8% and small group premiums by 22.8%, while MVP Health Care will increase individual premiums by 14.2% and small group premiums by 11.1% over the rates from the previous year. These double-digit increases in premiums have also been approved for the years 2023 and 2024.
In response to the approved premium increases, Green Mountain Care Board Chair Owen Foster expressed his concerns about the underlying failures in the healthcare system that have led to the affordability crisis faced by Vermonters. Foster emphasized the need for systematic change to address healthcare cost structures, demographic challenges, and housing issues in the state.
Despite the significant premium hikes, the care board highlighted that individuals purchasing plans on the individual marketplace will have access to expanded federal subsidies in 2025 to help offset the increased costs. The board encouraged all individuals to explore their eligibility for this financial assistance. However, for purchasers of small group plans and individuals with incomes too high to qualify for subsidies, the approved premium increases are deemed „painfully high.“
The board slightly reduced each insurer’s initial premium increase request based on the findings of its actuarial consultants. BCBS of Vermont, in particular, cited „extraordinary cost pressures“ as the reason for their amended increased request, which the board largely accepted. The Vermont Department of Financial Regulation had previously warned BCBS of Vermont about low reserve funds, prompting the insurer to seek a larger premium increase to stabilize its reserves and ensure it can cover higher than anticipated claims.
Foster acknowledged the unacceptability of the high premium rates but emphasized that the alternative of an insolvent insurer unable to pay for patient care would be even worse. The decision to approve the double-digit premium increases reflects the complex challenges facing Vermont’s healthcare system and the urgent need for comprehensive reform to address the affordability crisis.