Vermonters who buy health insurance through the state’s Obamacare portal, Vermont Health Connect, will likely see a big increase in their premiums next year after state regulators voted this week to allow double-digit increases.
The increases may coincide with the end of federal market subsidies under America’s Rescue Plan next year. The hikes could push some Vermonters out of the insurance market altogether.
The Green Mountain Care board, an independent body that regulates growing hospitals and a significant portion of Vermont’s health insurance market, voted Thursday to allow double-digit rate increases for Blue Cross Blue Shield of Vermont and MVP Health Care in 2023 , according to a press release from the board.
Thursday’s decision affects about 72,000 Vermonters in two groups: those who buy health insurance on their own and those who get insurance through their small employer.
Enrollees who get their insurance through their small employer will face an average increase of 11.7%, or $71 per month, in their Blue Cross Blue Shield of Vermont plans. Under MVP, the increase would average 18.3%, or $106 per month.
People buying insurance on the market themselves would face similar increases. Blue Cross Blue Shield of Vermont would increase its premiums by an average of 11.4%, or $79 per month. MVP rates would increase an average of 19.3%, or $130 per month.
Both insurers had initially sought even higher rate hikes for both categories. In its press release, the board cited inflation and workforce pressures as factors driving these demands. Regulators lowered required amounts for both insurers but kept rate increases in the double digits.
The decision comes just days before the Green Mountain Board of Care begins the process of reviewing the hospital’s annual budget. Here, too, hospitals have sought steep increases that could drive up premiums — and the cost of care in Vermont.
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