Would Lower Costs for Families and Property Taxpayers
Vermont Business Magazine Vermont Senate leaders, joined by the State Treasurer’s Office, health care advocates, workers, and providers, today outlined a major package of legislation advancing this session aimed at lowering health care costs for families and reducing pressure on property taxpayers.
As Vermonters face rising costs for housing, food, and health care, lawmakers emphasized that health insurance is one of the biggest drivers of both household expenses and local property taxes, particularly through school and municipal budgets.
The Senate’s approach targets the underlying drivers of cost growth — especially high hospital prices — while also strengthening access to primary care to reduce long-term costs.
“Vermonters are feeling this every month in their premiums, and every year in their property tax bills,” said Senator Ginny Lyons, Chair of the Senate Health & Welfare Committee. “When health care costs go up, it shows up in school budgets, in town budgets, and at the kitchen table. We are working to lower those costs and ensure that primary care is accessible across the state, delivering real relief to families and taxpayers.”
The package includes legislation to:
• Cap certain hospital prices in the individual and small group market, a move expected to save tens of millions of dollars for Vermont families and small businesses purchasing insurance on the exchange.
• Invest in primary care, where care costs far less than in hospital settings.
• Evaluate cost-saving strategies for public employee and educator health plans, which could reduce one of the fastest-growing pressures on school budgets and property taxes.
• Explore a larger, more stable public-sector insurance pool, aimed at increasing bargaining power and stabilizing costs over time.
Advocates emphasized that health care affordability is now central to Vermont’s broader affordability challenges.
“Healthcare costs are not just a health issue — they are a household budget issue, a drag on our small employers and a taxpayer issue,” said Vermont’s Health Care Advocate Mike Fisher. “If we don’t address these underlying costs, more and more Vermont families will be priced out of the ability to get the coverage they need and more Vermonters will have coverage they can't afford to use.”
For Vermont educators, the connection between health care costs and school funding is immediate and visible.
“As a teacher, I see how rising health care costs ripple through our schools,” said Rachel Van Vliet, a 15 year Barre Town special education teacher and local union leader. “It affects what districts can afford, what teachers, school support staff and taxpayers are asked to pay, and what resources are available for students. Bringing these costs down is essential if we want strong schools and sustainable communities.”
Health care providers stressed that long-term cost control must include a stronger investment in primary care, particularly in rural communities.
“Vermont is under huge pressure to reduce health costs. Investing in primary care reduces total cost of care and improves health care outcomes for patients and families,” said Dr. Anne Morris, primary care physician. “Rural communities are some of the most vulnerable when it comes to accessing and receiving high quality health care. They experience high rates of chronic disease, reduced access to preventative services, longer wait times, and the burden of having to travel farther for care. Investing, really investing, in primary care is the path forward for health care reform in Vermont.”
State Treasurer Mike Pieciak has brought forward H.577, a bill that would save Vermonters millions each year on their prescription drugs. "Skyrocketing health care costs are causing Vermonters real pain—making our state less affordable and our communities less healthy," said Treasurer Pieciak. "We need a health care system that works for people, not against them. In the Treasurer's Office, we'll continue bringing forward bold solutions like H.577 that make health care more affordable, accessible, and high quality across Vermont."
Senate leaders emphasized that this effort builds on work already underway to address systemic cost drivers and represents a critical step toward making Vermont more affordable.
“We hear Vermonters clearly — costs are too high,” Lyons added. “This is about taking real action to lower health care costs, ease pressure on property taxes, and make sure people can afford to live and work in Vermont.”
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