Vermont Republican Gov. Phil Scott signed an executive order July 8 to kick off a state initiative focused on healthcare affordability.
The order prompts state agencies to act within their existing authority and develop statutory reform recommendations for the 2027 legislative session.
By Dec. 31, 2026, the Department of Financial Regulation must form a plan allowing insurers to offer rate incentives for tobacco avoidance and modify premiums by age, within 20% of the community rate. Abiding by that same deadline, the Department of Vermont Health Access, in collaboration with the Department of Financial Regulation, must set up an application for an ACA State Innovation Waiver, which could explore the possibility of a reinsurance pool. The Department of Vermont Health Access must propose enabling legislation to state health committees by Feb. 1, 2027.
Under the order, the Department of Financial Regulation will also review the parameters around association health plans and multiple employer welfare arrangements, advising on changes to expand small-business coverage options. Departments will evaluate possible tax incentives, too, such as those for individual coverage health reimbursement arrangements.
“For too long, Vermonters have paid some of the highest health insurance premiums in America while having fewer affordable choices than people in neighboring states,” Mr. Scott said in a July 8 news release. “We cannot continue following the same old policy path and expect different results. It’s time to modernize Vermont’s healthcare laws by adopting practical reforms that have already proven successful in many other states.”
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