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 have sufficient cash reserves and positive operating margins, ensuring that the reductions do not compromise the hospitals' financial stability below a specified threshold.

Additionally, the bill amends 18 V.S.A. 9456 to enhance the Board's authority in 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 misrepresent information or fail to comply with budgetary requirements, with the authority to charge hospitals for the observer's costs. This observer authority is set to be repealed on January 1, 2030.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