The proposed bill aims to provide Medicaid-equivalent coverage to all Vermont residents, regardless of household income, through a phased implementation based on age bands. The coverage will begin with individuals up to 26 years of age in 2029 and will expand to include all residents by 2033. The bill mandates the Agency of Human Services to seek federal approval for financial participation in this expanded coverage, with the state committing to fund the program entirely if federal approval is not granted. Additionally, the Agency is tasked with estimating the costs associated with this coverage and developing a detailed implementation plan.

Furthermore, the bill requires the Department of Taxes to explore payroll tax options to support the state's financial obligations for the Medicaid-equivalent coverage, both with and without federal funding. The Department must report its findings by January 15, 2027, while the Agency of Human Services is expected to provide cost estimates and an implementation plan by January 15, 2026. The bill's provisions for Medicaid-equivalent coverage will take effect on January 1, 2029, while other sections will become effective upon passage.