Starting next October, businesses and individuals will be able to select their health insurance like they make airline reservations on Orbitz. They'll be able to go to a Web site and see what carriers are offering and at what premiums. Because health insurance is regulated, there won't be discounting, but there will be at least four private carriers competing based on a selection of plans they offer at pre-determined prices: Blue Cross and Blue Shield of Vermont, MVP Healthcare, Cigna and the new Vermont Health Co-op. Others could join if they choose to go through the regulatory process. The premiums are expected to be set by the summer (SEE VIDEO BELOW).
The implementation of service will begin on January 1, 2014. Vermont is one of more than a dozen states to receive a federal waiver that allows for states to set up these health care exchanges for private insurance. In the first year, businesses with 50 or fewer employees will be able to use Vermont Health Connect to find coverage for their employees. Starting in 2016, employers with up to 100 workers will be able to offer coverage through Vermont Health Connect. Medicaid recipients will also use VHC. Every small business and every uncovered individual in Vermont must get coverage through VHC. Individuals without coverage face penalties.
The US Department of Health and Human Services announced January 3 that the State of Vermont had been granted conditional approval to operate its health benefit exchange, called Vermont Health Connect. This approval indicates that Vermont is compliant with federal regulations for operating a state-based exchange and is prepared to begin open enrollment in October 2013, conditional on the state meeting specific milestones over the next nine months.
Vermont continues to be a leader in health care reform, and this is another illustration of our progress toward meeting our reform goals, said Governor Peter Shumlin. We are building an exchange that works for Vermonters now and in the future.
Vermont Health Connect will be the marketplace for individuals, families, and small businesses to compare and purchase qualified private health insurance plans, determine eligibility for and enroll in public health insurance plans, and access tax credits and financial assistance to make insurance affordable.
VIDEO: Robin Lunge, Director of Health Care Reform, and Mark Larson, Commissioner, Department of Vermont Health Access, at a press conference following the federal announcement of approval for Vermont Health Connect.
HHS Secretary Kathleen Sebelius congratulated Vermont for demonstrating how it will meet all requirements of the federal Affordable Care Act for establishing a State-based Exchange. Todays approval indicates that the State has successfully met federal expectations and outlined plans for meeting additional federal requirements between now and October when the Exchange will open for shopping and enrollment. In addition, Vermont Health Connect will be uniquely tailored to Vermont. Secretary Sebelius letter of approval can be found at http://cciio.cms.gov/resources/files/vt-blueprint-exchange-letter-01-03-...
We are dedicated to building an Exchange Vermonters can trust. I thank HHS for their partnership in the development of our application and am pleased to learn that they share our confidence in launching Vermont Health Connect later this year, said Mark Larson, Commissioner of the Department of Vermont Health Access. We have made significant progress towards creating Vermont Health Connect as a place where Vermonters can access affordable, comprehensive coverage. Secretary Sebelius has clearly outlined the conditions of our full approval, and Im certain that we will meet all conditions by the federal deadline.
Vermont is one of 19 states, plus the District of Columbia, to submit a standard blueprint application to construct and operate a State-based Exchange. As of now, conditional approval has been granted to all states that have submitted the blueprint application and full approval will be granted once all conditions are met.
DVHA 1.3.2013