Blue Cross Blue Shield of Vermont is taking steps to shore up its finances in the face of unprecedented challenges, VTDigger reported May 7.
In July 2024, BCBS Vermont said it was in a “fragile financial state,” in the face of climbing healthcare costs. AMBest has rated the insurer’s financial strength as “marginal.”
The company has lost nearly $152 million since 2021, according to data from the insurer. BCBS Vermont lost $62.1 million in 2024.
Here are seven things to know:
- The company has taken several steps to try to mitigate the losses, including offloading most of its Medicare Advantage business to BCBS Michigan, according to VTDigger. BCBS Vermont became a subsidiary of BCBS Michigan in 2024.
- The company is also repaying a $30 million loan to BCBS Michigan.
- According to USA Today, BCBS Vermont has implemented a comprehensive recovery plan with state regulators. The company is also cutting back on administrative expenses and has frozen hiring for around 30 positions, VTDigger reported.
- BCBS Vermont has requested state regulators approve large premium increases to offset rising costs. The insurer expects to request similarly large increases for 2026, according to VTDigger.
- In March, the Green Mountain Care Board, the state’s healthcare regulator, reached a settlement with Burlington-based University of Vermont Health Network to provide $12 million to BCBS Vermont.
- Vermont lawmakers are also considering legislation to help the insurer’s finances. One bill would allow state regulators to reduce reimbursement rates an insurer pays to Vermont hospitals if it faces an “immediate threat” to its solvency, according to VTDigger.
In a letter to stakeholders obtained by USA Today, BCBS Vermont CEO Don George thanked “regulators, legislators, government and health care partners across the state for their willingness to advance difficult but meaningful changes for our health system.”
