The two graphs below dramatically show this. It is obvious that there is something wrong here. When costs exceed revenues, any businessperson will tell you the situation becomes unstable. This amounts to a hidden tax on all Vermonters. When insurance costs go up, employers cannot afford to give salary increases to employees.
Some employers drop insurance or require employees to care more of the cost.
And there is more bad news. Medicare, the largest payer in Vermont, will be cutting its reimbursement levels even further over the coming years. The Balanced Budget Act of 1997 requires more cuts to hospitals, doctors, nursing homes and home health agencies. The fabric of our fragile health care system in Vermont is beginning to fray very badly. It is time for government to acknowledge its responsibilities to its citizens and make fair and equitable payments to health care providers.