PRIA Logo™
VermontH.4822025-2026 SessionHouseWALLET

An act relating to Green Mountain Care Board authority to adjust a hospital’s reimbursement rates and to appoint a hospital observer

Sponsored By: Sponsor information unavailable

Signed by Governor

Personalized for You

How does this bill affect your finances?

Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.

Free to download

Bill Overview

Analyzed Economic Effects

3 provisions identified: 0 benefits, 2 costs, 1 mixed.

Hospitals face temporary independent compliance monitors

Beginning June 5, 2025, the Green Mountain Care Board can appoint an independent hospital observer when doing so serves the public interest. The hospital must have materially misrepresented information or seriously failed to follow its approved budget. Hospitals must provide requested information, including network details, and the Board can require them to pay some or all observer costs. Monitoring can reach affiliated entities; observers can share information with the Board and Health Care Advocate and report findings and recommendations. Observers must protect confidential and proprietary information, and this authority ends January 1, 2030.

Tighter hospital budgets and payment oversight

Beginning June 5, 2025, hospital budgets must reflect prior-year results, including significant revenue above budget that has not already been addressed. The Green Mountain Care Board can change commercial insurers’ hospital payment rates at any point during the hospital’s fiscal year. Changes must aim to keep the hospital within its approved budget; exceptional or unforeseen events can also justify budget adjustments. The Board can request needed information and extend budget oversight to affiliated entities. Owning at least 20% of voting shares or similar interests creates a presumption of control that an entity can challenge.

Hospital payment cuts to protect insurers

Beginning June 5, 2025, the Green Mountain Care Board can reduce a Vermont-based commercial health insurer’s payments to qualifying Vermont hospitals. It must first consult the state financial regulator and find an immediate solvency threat tied to the regulatory action-level capital trigger. A hospital qualifies with more than 135 days of cash on hand and a positive operating margin last fiscal year. A network hospital also qualifies if its combined network meets either financial test. Networks must include at least two affiliated hospitals, have integrated finances and governance, and get at least 50% of operating revenue from Vermont hospitals. Cuts must address only the solvency threat, consider both sides’ financial obligations, and leave at least 125 projected days of cash. Cuts can last until insurer capital exceeds the company action-level threshold. Hospitals must have a chance to seek relief; affected parties can appeal, although these decisions are not formal contested-case proceedings. The law does not guarantee lower household premiums or out-of-pocket costs.

Sponsors & Cosponsors

Sponsors

There is no primary sponsor on record.

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

Actions Timeline

  1. House message: Governor approved bill on June 5, 2025

    6/9/2025House

  2. Signed by Governor on June 5, 2025

    6/5/2025House

  3. Delivered to Governor on May 30, 2025

    5/30/2025House

  4. House message: House concurred in Senate proposal of amendment

    5/27/2025House

  5. Senate proposal of amendment concurred in

    5/23/2025House

  6. Action Calendar: Senate Proposal of Amendment

    5/23/2025House

  7. Notice Calendar: Senate Proposal of Amendment

    5/22/2025House

  8. Senate Message: Passed in concurrence with proposal of amendment

    5/21/2025Senate

  9. Division of the Senate Y-16, N-12

    5/20/2025Senate

  10. Read 3rd time & passed in concurrence with proposal of amendment

    5/20/2025Senate

  11. New Business/Third Reading

    5/20/2025Senate

  12. 3rd reading ordered

    5/16/2025Senate

  13. Proposal of amendment by Committee on Health and Welfare agreed to

    5/16/2025Senate

  14. Read 2nd time, reported favorably with proposal of amendment by Senator Cummings for Committee on Health and Welfare

    5/16/2025Senate

  15. Favorable report with proposal of amendment by Committee on Health and Welfare

    5/16/2025Senate

  16. Unfinished Business/Second Reading

    5/16/2025Senate

  17. Favorable report with proposal of amendment by Committee on Health and Welfare

    5/15/2025Senate

  18. Unfinished Business/Second Reading

    5/15/2025Senate

  19. Favorable report with proposal of amendment by Committee on Health and Welfare

    5/14/2025Senate

  20. New Business/Second Reading

    5/14/2025Senate

  21. Favorable report with proposal of amendment by Committee on Health and Welfare

    5/13/2025Senate

  22. Second Reading

    5/13/2025Senate

  23. Entered on Notice Calendar

    5/13/2025Senate

  24. Read 1st time & referred to Committee on Health and Welfare

    3/21/2025Senate

  25. Rules suspended and bill messaged forthwith to the Senate as moved by Rep. McCoy of Poultney

    3/21/2025House

Bill Text

  • As Enacted (ACT 49)Opens in a new window

    6/11/2025

    PDF

  • As Passed by Both Chambers

    5/30/2025

    PDF

  • As Passed by Both Chambers (Unofficial)

    5/30/2025

    PDF

  • Senate Proposal of Amendment

    5/21/2025

    PDF

  • Senate Proposal of Amendment (Unofficial)

    5/21/2025

    PDF

  • As Passed by the House

    3/21/2025

    PDF

  • As Passed by the House (Unofficial)

    3/21/2025

    PDF

  • As Introduced

    3/17/2025

    PDF

Related Bills

Back to State Legislation