Montpelier – The Vermont Medical Society, which represents more than 1,500 Vermont physicians, endorses the compromise health care reform bill worked out between House and Senate negotiators. The VMS commends the Legislature for reaching an agreement that all parties can support, and hopes any concerns that Gov. Douglas has on technical issues can be worked out so the bill can become law.

The latest version of the bill contains five key provisions that are consistent with the VMS’s long-standing principles of health care reform.

-- A new health insurance program to cover uninsured Vermonters will be created in the private market. The VMS supports Catamount Health being offered through the private sector, given the Medicaid program’s history of paying at only half the actual cost of providing services. As a result, Medicaid’s unpaid costs have been shifted onto other Vermonters.

-- Steps will be taken to address the Medicaid cost-shift. The bill begins to move the Medicaid program’s physician reimbursement to be more in line with Medicare’s payment. This will help reduce the Medicaid cost-shift, which will in turn help more employers offer insurance to their employees.

-- A commission will be created to address administrative complexity of the health care system. By reducing the amount of time physicians have to spend on paperwork and administrative tasks, they will have more time to spend with patients.

-- Vermont’s Chronic Care Initiative will receive further support. Vermonters with chronic conditions consume the great majority of health care expenditures. Putting more emphasis on managing chronic conditions will improve health outcomes and reduce health care costs for all Vermonters.

-- Healthier lifestyles will be promoted, as insurers will be allowed to give discounts to Vermonters who participate in health improvement programs, such as smoking cessation efforts.

The VMS strongly supports increasing Vermont’s cigarette tax as a revenue source for Catamount Health.

While the agreement reached between House and Senate conferees is a good bill, there is more work to be done in future years, the VMS believes. For example, there is no guarantee in the bill that Vermonters will have universal access to health care, and there is no requirement that Vermonters must carry at least basic health insurance coverage. The VMS will continue to work toward all Vermonters having health insurance.

For more information, contact

Paul Harrington, VMS Executive Vice President

802-223-7898

Steve Larose, VMS Communications Director