Governor Signs Bill
Democratic Governor Peter Shumlin signed a bill that aims to establish a universal insurance coverage for all residents. The bill will make Vermont the first state to lay the foundation for a single payer health care system. The Governor stated that the new bill is recognition of the economic and fiscal imperatives in the present scenario. The bill will assist in controlling the healthcare costs, which are an economical burden on families and makes it difficult for small businesspersons to do business.Coverage For Over 600,000 Residents
According to the Legislators, the new law approved by the house and the senate will provide coverage to 620,000 residents in the state. In addition, the new bill will curtail the soaring costs of providing healthcare services. One of the key factors included in the new bill will establish a state health benefits exchange program. The new mandated federal healthcare laws will provide coverage from the private insurers, state sponsored insurers and multi-state insurance plan providers. Moreover, the bill will include tax credits so that the premiums can become affordable to the uninsured population of the state.
Green Mountain Care Exchange Plan
The new exchange program under the new bill known as the Green Mountain Care Exchange will be managed by a board comprising five members. The board will determine the reimbursement rates for the numerous healthcare providers while streamlining the various administrations under a single united system. This will enable the residents and small businesspersons to compare the rates of various providers and choose a plan that is the most suitable to their requirements. The final goal of the new bill is to provide a state-funded single payer system.
The Outcome Is Uncertain
Even though the new bill pioneers a new law in the present economic conditions and the high healthcare costs, the sponsors of the program are unsure about its outcome. The implementation of the plan will be phased over several years. The financial structure will evolve during this period and requires certain conditions to be satisfied. One of the first conditions to be fulfilled is adopting a financial plan by 2014, which ensures that the expenditure under the new system is less than the present fee for service one. In addition, the new bill requires federal permission through a waiver that allows Vermont to execute the single payer system by the year 2017. The present system offers a financial incentive for delivering more care while paying no attention to the quality of the services or the results of the treatments.
New Law To Bring Huge Savings
The new system did not form a part of the federal healthcare plan due to the excess government control. However, advocates of the plan state that there are huge savings that can be potentially made by implementing the new system. The board is slated to provide a financial plan incorporating coverage costs, estimated savings, and the possible revenue sources by the year 2013. According to the present system, there are over 47000 residents who are uninsured and approximately 150000 residents who are underinsured. The present spending of the state’s healthcare coverage is $5 billion that is increasing by 6.5% to 8.5% annually. The new plan will save roughly $580 million per annum with the amount reaching $1.9 million by 2019. In addition, the plan will create several thousand jobs in the state.