The bill H.585 proposes comprehensive reforms to the governance of health insurance in Vermont, particularly targeting nonprofit hospital service corporations. It amends Chapter 123 of Title 8 to ensure these corporations operate exclusively for the benefit of their subscribers, requiring that at least three-fourths of their board of directors be composed of subscribers and public representatives. The bill also establishes a compensation committee to oversee executive pay, mandating that at least two public representatives serve as voting members. Additionally, it expands access to association health plans by broadening the definitions of eligible employers and repealing certain membership requirements for associations.

Moreover, the bill introduces site-neutral reimbursement policies for physical therapy, occupational therapy, and athletic training, ensuring uniform reimbursement rates across contracts, with exceptions for inpatient settings. It mandates annual reporting from health care sharing plans for transparency and accountability and tasks the Department of Vermont Health Access with exploring flexible health insurance plan designs. The bill also outlines new administrative penalties for compliance deficiencies, allowing the Commissioner to issue cease and desist orders if issues are not resolved within 30 days. The act is set to take effect on July 1, 2026, with specific provisions for association health plans and site-neutral reimbursements taking effect on January 1, 2028, and October 1, 2026, respectively.

Statutes affected:
As Introduced: 8-123, 8-4516, 8-4588, 8-5115, 8-4041, 8-4043, 8-4053, 18-9418a, 18-9418b, 18-9376
As Passed By the House -- Official: 8-123, 8-4516, 8-4588, 8-5115, 8-4041, 8-4043, 8-4053, 18-9418a, 18-9418b, 18-9376
As Passed By the House -- Unofficial: 8-123, 8-4041, 8-4043, 18-9418a