Vermont Orders 20% Age-Based Premium Flexibility to Tackle $1,299 Monthly Health Insurance Costs
Updated
Updated · Las Vegas Review-Journal · Aug 3
Vermont Orders 20% Age-Based Premium Flexibility to Tackle $1,299 Monthly Health Insurance Costs
1 articles · Updated · Las Vegas Review-Journal · Aug 3
Summary
Gov. Phil Scott ordered Vermont officials to draft rules letting insurers vary premiums by age, capped at 20% above or below the community rate.
The change targets a market where younger adults often forgo coverage because they cannot get lower prices reflecting lower medical costs, leaving an older, costlier insurance pool.
Vermont’s benchmark silver plan averages $1,299 a month—the highest in the U.S.—while the cheapest tier averages $824 with a nearly $10,000 deductible.
The order marks a shift from policies tied to Vermont’s failed 2011 single-payer push, which was abandoned in 2014 after projected financing required an 11.5% payroll tax and higher income taxes.
The state’s marketplace now has only two private insurers, compared with four in New Hampshire, eight in Massachusetts and about 12 in New York.