Vermont Hospitals Oppose Planned Medicaid Cuts, Provider Tax Increase

The Vermont Association of Hospitals and Health Systems is speaking out against planned reimbursement cuts from the state’s Medicaid program, included as part of Governor Peter Shumlin’s state budget, according to a Burlington Free Press report.

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The budget also includes a $17 million increase in provider taxes paid by hospitals in the state. While these funds would be used to draw federal matching funds for the Medicaid program, representatives for the VAHHS argue the move would inhibit the state’s plan to move toward a single-payor system. 

“Our concern is that it goes 180 degrees in the wrong direction from where the state wants to go with healthcare,” VAHHS President Bea Grause said in the report.

The budget also includes having the state’s Medicaid program absorb Vermont’s Catamount Health plan, a state subsidized program for low- and moderate-income working residents. Hospital also oppose this move, pointing out that Medicaid reimburses at lower rates than Catamount, putting hospital finances at risk.

Read the Burlington Free Press report on Vermont Medicaid.

Read more coverage on Vermont healthcare:

Vermont May Move to Single-Payor Health System

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