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BURLINGTON, vt. –
The Green mountain Care Board (GMCB) has finalized its approval of health insurance rates for 2026, a decision reached after a year of escalating financial strain on Vermont’s healthcare system - impacting providers, patients, and insurers alike. In a move aimed at affordability,the board significantly reduced rate hike requests from major insurance providers,opting for more moderate increases.
Rate Hikes Scaled Back
Regulators rejected double-digit percentage increases proposed by BlueCross BlueShield for individual and small group plans. The insurer’s initial request of a 23.5% rate increase was slashed to a 9.6% approval. MVP Health also faced similar reductions, with the GMCB approving a 1.3% increase on individual coverage, substantially lower than the provider’s requested 6.2%.
GMCB Chair Owen foster highlighted that these approved rates are comparatively lower than those being seen in many other states currently grappling with double-digit increases. Though, he acknowledged a sobering reality: despite the reductions, Vermont continues to bear the distinction of having the highest health insurance premiums in the country.
Balancing Act: Affordability vs. Financial Stability
Foster emphasized the difficult balancing act the board faced. Blue Cross remains in a difficult position financially, but so too do Vermonters, and the Board’s responsibility is to balance those competing interests,
he stated.Ultimately, we decided allowing these monumental rate increases would be detrimental to people’s ability to access care and that the status quo of double-digit rate increases is not acceptable.
The GMCB’s decision reflects a growing concern over the accessibility of healthcare in Vermont. Allowing the full requested increases would have placed an undue burden on individuals and families already struggling with the high cost of living.
Executive Compensation Under Scrutiny
Beyond rate approvals,the board also turned its attention to the financial practices within Vermont’s hospital system. The GMCB indicated it reviewed the salaries of hospital executives and found them to be misaligned with the state’s broader goals for healthcare reform. while specific details of the executive compensation review were not immediately released, the board’s statement signals a potential push for greater financial accountability within the healthcare leadership.
