![]() ![]() The Green Mountain Care Board concurs that the primary driver of increased medical costs is the unit cost (price), not utilization. An Agency of Human Services consultant, Michael Bailit, who is currently leading Vermont stakeholders* in determining the future of Vermont’s health care reform efforts, states in his recent Health Affairs article that “price appears to be the primary cost driver in the commercial market.” Most experts agree that the price of health care services is the chief contributor to the increasing cost of health care. Vermont’s escalating hospital and health insurance rate increases are an indicator that we have made no progress. ![]() Hospital rate increases affect the commercial market, not Medicare rates, and, according to RAND data for 2018-20, UVM Medical Center’s commercial rates (prices) are already more than three times higher than Medicare rates. These hospital rate increases will be passed on to the commercial insurers who will be forced to raise insurance premiums and out-of-pocket costs to cover the higher cost of hospital care. This explosion of rates can be seen in the recently approved 11% to 19% rate increases for BlueCross BlueShield of Vermont and for MVP Health Care.Īdditionally, Vermont hospitals just received a 12% rate increase (on average), the highest being UVM Medical Center’s at nearly 15%. Hospital prices and health insurance costs are exploding, leaving affordability in their wake. ![]() This commentary is by Julie Wasserman of Burlington, an independent health policy consultant who worked for Vermont state government for over 25 years. The three authors are Julie Wasserman, Patrick Flood and Mark Hage. This first installment addresses current problems in Vermont’s health care system, the second focuses on what is needed instead, and the third centers on approaches to alternatives. This is the first of a three-part series on health care reform in Vermont. ![]()
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