The bill introduces a new section, 18 V.S.A. 9384, which establishes a framework for the Green Mountain Care Board to reduce or reallocate reimbursement rates to Vermont hospitals if a domestic health insurer is facing an acute threat to its solvency. The Board, after consulting with the Commissioner of Financial Regulation, can order these reductions until the insurer's risk-based capital exceeds the defined threshold. The bill specifies criteria for which hospitals may be subject to these rate reductions, ensuring that hospitals with sufficient cash reserves and positive operating margins are prioritized. Additionally, the Board must consider the financial obligations of both the hospital and the insurer when determining the extent of any rate reductions.

Furthermore, the bill amends 18 V.S.A. 9456 to enhance the Board's authority regarding hospital budget reviews and adjustments. It allows the Board to adjust commercial health insurance reimbursement rates during a hospital's fiscal year to ensure compliance with established budgets. The bill also introduces provisions for appointing an independent observer to monitor hospitals that are found to be materially misrepresenting information or noncompliant with their budgets. This observer will have the authority to gather information and report findings to the Board, with the costs potentially borne by the hospital. Notably, the authority to appoint independent observers will be repealed on January 1, 2030. The act takes effect upon passage.

Statutes affected:
As Introduced: 18-9456
As Passed By the House -- Official: 18-9456
As Passed By the House -- Unofficial: 18-9456
As Passed by Both House and Senate -- Official: 18-9456
As Passed by Both House and Senate -- Unofficial: 18-9456
As Enacted: 18-9456