Individuals and small business owners purchasing health insurance through the Vermont Health Connect marketplace will face modest premium hikes starting in 2027. Late Monday night, the Green Mountain Care Board announced that rate increases would range from 1 percent to 6 percent, falling below what the insurers had originally requested. Under the new orders, BlueCross BlueShield of Vermont’s individual plans will rise by 2.2 percent and its small group plans by 1.2 percent, while MVP Health Care will see individual plan increases of 3.9 percent and small group jumps of 6.2 percent.
State officials suggest these numbers reflect ongoing efforts between legislators, hospitals, and regulators to curb skyrocketing costs. However, the relief comes after years of significant inflation; since 2021, individual plan premiums in Vermont have surged by nearly 75 percent. While current national trends show many states seeing double digit increases in their small group markets, Vermont continues to struggle with some of the highest baseline premiums in the country, a situation exacerbated for some residents by the loss of certain federal tax credits.
Regulators identified the rising cost and utilization of pharmaceuticals, particularly weight loss medications, as a primary catalyst for this year’s increases. To mitigate these costs, BlueCross BlueShield shifted some coverage toward cheaper drug alternatives. Despite these adjustments, hospital expenses remain the largest portion of premium spending. In response, the care board ordered insurers to better align their payments with Medicare standards and scrutinize expenditures sent to out-of-state facilities to ensure they meet state affordability goals.
The decision was not without internal conflict, as board chair Owen Foster issued a rare dissent regarding payments to non-Vermont hospitals. Foster argued that allowing potential payment increases for out-of-state providers while lowering them for local ones essentially drains healthcare dollars away from Vermonters and favors larger external systems. Conversely, Department of Financial Regulation Commissioner Kaj Samsom defended the shift, noting that reducing in-state hospital charges is necessary because previous costs were demonstrably too high and finally being addressed through aggressive regulatory action.
