Vermont Senate passes legislation to eliminate physician pay disparities: 7 things to know

Legislation to eliminate medical pay disparities between independent physicians and hospital-employed physicians passed by an overwhelming majority in the Vermont Senate, according to a VTDigger report.

Here are seven things to know.

1. The pay parity provisions, which address reimbursement for the same service, were attached by the Senate to a House bill known as H.29.

2. Under the Senate's version of H.29, a working group assembled by Vermont's Green Mountain Care Board would work on a plan to decrease pay disparities between independent physicians and academic medical center-employed physicians by the "maximum achievable" amount in the next three years, according to the report. The group would then deliver an update to a joint legislative committee this year, the report states.

3. The legislation also would make it illegal for insurers to increase reimbursement rates for a physician practice solely because it is hospital-owned, reports VTDigger.

4. Independent physicians have been supportive of the bill. They said insurance companies reimburse hospital-employed physicians two to three times as much as independent physicians for doing the same service, according to the report.

5. However, hospitals and insurance companies are among the bill's opponents, according to the report.

6. Sen. Claire Ayer, D-Addison, was one of two Senators who voted against the new provisions. On May 4, prior to the vote for approval, Ms. Ayer argued on the Senate floor that independent physicians take home as much if not more money than hospital-employed physicians, according to the report. She added that true pay parity reform would involve the entire medical system, including mental health and substance abuse professionals, the report states.

7. The state House would still have to accept the Senate's changes, the report notes.

Read the full report here.

 

 

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