State regulators decided on Friday to allow Vermont’s largest medical network to moderately raise service charges for two hospitals in the middle of the fiscal year, but with a 10% increase required by the network. I refused to approve.
With 3-2 votes, the Green Mountain Care Board has approved Berlin’s Central Vermont Medical Center to raise service rates by up to 2.7% this year. In another 3-2 votes, the Board allowed Burlington’s UVM Medical Center to raise service fees by up to 2.5%.
“I don’t think this will solve the problem,” Chairman Kevin Marin said in a hearing on Friday. “But given the nature of the pressure on all of our hospitals, UVM people are aware of the shoes they have now.”
The careboard decision means that citizens of Vermont with private insurance are likely to pay higher premiums than next year. Companies that insure their employees can quickly increase the cost of care.
Board members Thomas Walsh and Tom Peram voted against the increase in both mid-years. Mullin, Jessica Holmes and RobinLunge voted in favor.
Board members said they are giving private insurance companies the leverage of potentially negotiating lower rates with either hospital by setting an increased rate cap.
The University of Vermont Health Network, which operates two hospitals, has requested a 10% price increase for Berlin and Burlington hospitals. Together, these hospitals are expected to have a deficit of $ 44 million this year.
Argobeille, executive vice president of the Health Network and former chairman of the Green Mountain Care Board, told board members that the expected losses “should be relevant to all residents of Vermont.”
He warned that the network would need to balance its budget by shrinking some services.
“This is a very serious moment,” he said. “That’s why we came to the request in the middle of the year.”
This story will be updated.
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