Vermont Governor vetoes healthcare reform bill

Vermont Governor Phil Scott has vetoed S.190, a healthcare bill that sought to accelerate the implementation of reference-based pricing for public school employees and individuals purchasing plans on the state's Affordable Care Act marketplace. Scott stated in a letter that his decision was based on fairness, arguing that savings should be shared broadly across the entire insurance system rather than directed at specific groups.

He indicated his intention to pursue similar reforms through executive action, focusing on structural changes that increase affordability and choice for all Vermonters. This approach contrasts with the targeted savings proposed in S.190.

Rep. Alyssa Black, who championed the bill, expressed strong disappointment and called the veto "vengeful," noting that her administration had collaborated on the bill's development. She argued that the governor's proposed cuts would not yield significant premium savings for insurance customers and that targeting teacher insurance was important due to its impact on property taxpayers.

Reference-based pricing ties insurer payments to hospitals to a benchmark, typically a percentage of Medicare rates. While lawmakers had planned a broader implementation for all hospitals in 2025, S.190 aimed to expedite the process for the two specified groups. The Green Mountain Care Board retains the authority to implement hospital budget reductions within the existing framework, though not specifically targeted at certain insurance buyers.