The bill introduces a new section, 18 V.S.A. 9384, which allows the Green Mountain Care Board to reduce reimbursement rates for Vermont hospitals if a domestic health insurer is facing an acute solvency threat. This decision can be made after consultation with the Commissioner of Financial Regulation and is contingent upon the insurer's risk-based capital levels. The Board can only order reductions for hospitals that meet specific financial criteria, such as having more than 135 days of cash on hand or a positive operating margin. Additionally, the Board must ensure that any rate reduction does not drop a hospital's cash on hand below 125 days.

The bill also amends 18 V.S.A. 9456 to enhance the Board's authority regarding hospital budgets and reimbursement rates. It allows the Board to adjust reimbursement rates during a hospital's fiscal year to ensure compliance with established budgets and introduces the ability to appoint an independent observer if a hospital misrepresents information or fails to comply with budgetary requirements. This observer will monitor hospital operations and report findings to the Board. Notably, the authority to appoint independent observers will be repealed on January 1, 2030.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