Over 50 people attended and the discussion was informative as it addressed the affordability of Vermont s health policies. The speakers wanted to preserve the advances we ve made in health care but believe state policies must change to restore individual responsibility in health care and more private insurance competition and choice will lower premiums. One speaker stressed that the financial condition of Blue Cross and MVP is on thin ice. Both are in need of capital reserves and further rate increases to prevent insolvency. Washington and Kentucky have mandates and community rating practices similar to Vermont that have forced out competition and their health care insurers are in financial trouble today.
Community rating means everyone pays the same rates regardless of age or health condition.
During the budget FY2000 adjustment debate on the House floor, two health related amendments were introduced. My argument was that the cost of kids health insurance shouldn t reflect the ratings of an older population, nor include mandates like pregnancy benefits. Also, parents should have the choice of private insurance rather than rely on the state s Dr. Dinosaur program for coverage. As Freed indicated in his argument, underfunding is really a hidden tax and a contributing factor to the premium cost spiral. Both amendments were defeated along party lines.