MONTPELIER, Vt.

Vermont Governor Phil Scott signed an executive order on Wednesday aimed at improving the accessibility and affordability of insurance as rising health care costs continue to impact employers and families.

Dawn Pawlowski, who works with OM Fisher Home Inc., supports seniors across several assisted living facilities in central Vermont. She described their organization as mission-driven, focused on community service rather than profit.

While they prioritize elderly care, they also address the medical needs of their staff. The organization covers 70% of health insurance premiums for its 50 employees through the small group health insurance marketplace. Like many other employers, they’ve noticed a steep rise in health insurance costs recently.

“We’re trying to stay competitive while recruiting and retaining skilled medical professionals, but our expenses just keep climbing,” Pawlowski remarked.

The administration’s proposal seeks to create a more manageable insurance market in Vermont. The goal is to entice more insurance companies, boost competition, and eventually drive down premiums.

“We will be modernizing Vermont’s health care laws, removing obstacles to affordable insurance, expanding consumer choices, and making our health care costs more competitive with neighboring states,” Governor Scott stated.

The signed executive order also proposes changes to how premiums are adjusted based on age, as Vermont is one of only two states that currently does not do this. The order would allow small businesses to collaborate on purchasing insurance and provide tax incentives for those who buy from exchanges.

“It helps save by targeting the minor reductions in the exchange market rather than tackling the actual health care cost reductions,” explained Kai Sampson, head of the Vermont Financial Regulatory Commission.

This order comes on the heels of Governor Scott vetoing a legislative bill designed to reduce health care costs by limiting what hospitals can charge.

He mentioned that this executive action is just the beginning of a comprehensive health care reform initiative that will also require legislative backing when the session resumes in January.