The bill H.585 proposes comprehensive reforms to the governance and compensation structures of nonprofit hospital service corporations in Vermont. It mandates that at least three-fourths of the board of directors be composed of subscribers and public representatives, with specific terms and appointment processes for public representatives. Additionally, a compensation committee will be established to oversee executive pay, and hospital service corporations will be required to file detailed compensation reports with the Commissioner of Financial Regulation. The bill also aims to expand access to health insurance by allowing limited age rating in individual and small group markets starting in the 2028 plan year, while enhancing access to association health plans and short-term insurance options.

Moreover, the legislation amends various sections of Vermont's health insurance laws, particularly concerning association health plans and short-term, limited-duration health insurance. It repeals certain requirements for associations, such as the minimum member count and restrictions on control by health insurers, while ensuring that policies cover all eligible members unless they opt out. The bill introduces new regulations for short-term insurance, allowing coverage for up to 12 months and requiring clear disclosures. It also emphasizes site-neutral billing practices and establishes a single reference-based price for outpatient services. Additionally, the Department of Vermont Health Access is authorized to pursue a Section 1332 waiver for a reinsurance program to secure federal funding for premium tax credits and cost-sharing reductions, with the act set to take effect on July 1, 2026.

Statutes affected:
As Introduced: 8-123, 8-4516, 8-4588, 8-5115, 8-4041, 8-4043, 8-4053, 18-9418a, 18-9418b, 18-9376