The governor presented his proposed budget Tuesday during a joint assembly of the legislature at the Vermont State House.
His office said the budget reduces costs in the state’s agency of human services by closing Southeast State Correctional Facility in Windsor, Vt., moving to direct enrollment for all non-Medicaid consumers on Vermont Health Connect, reducing disproportionate share payments to hospitals and increasing vacancy savings within the agency.
“It’s an understatement to say that Vermont Health Connect has not lived up to our expectations. I promised a solution to the exchange, and even with the uncertainty in Washington, we continue to evaluate better options for the future,” Gov. Scott said during his first budget address, according to the transcript published by Vermont Public Radio.
He went on to detail changes the state will make to the exchange.
Gov. Scott said Vermont will remove the state as a middleman between health insurance companies and those who do not qualify for subsidies, like Medicaid. This essentially means Vermonters who want to purchase private insurance from Blue Cross Blue Shield of Vermont or MVP Health Insurance will now purchase plans directly from insurers, according to a VermontWatchdog.org report. The governor estimates this will save the state $2.8 million annually.
As far as other healthcare changes in the state, Gov. Scott said he is also proposing reductions in Vermont’s “disproportionate” share payments for hospitals by 10 percent. These payments offer federal financial aid to hospitals serving a disproportionate number of low-income patients.
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