Vermont Business Magazine The University of Vermont Health Network has proposed an increase in commercial insurance rates of 0.72 percent for Fiscal Year 2018, following a series of historically low requests in recent years made jointly by the UVM Medical Center and Central Vermont Medical Center. This is the second year in a row the request is under the rate of inflation, and the lowest request made by either hospital in at least 15 years. The UVM Medical Center is the state's largest hospital.
“Individuals and employers need relief from health care costs and we are constantly looking for ways to do our part to make that possible, including the creation of the UVM Health Network and our efforts to increase efficiencies wherever we can,” said John Brumsted, MD, president and CEO of the UVM Health Network and CEO of the UVM Medical Center, in a press release Friday.“This downward trend in rate requests is encouraging, and it is helping us reach our goal of reducing the cost of health insurance for employers and individuals, but much more needs to be done and we’re committed to the work ahead.”
For the second year in a row the UVM Health Network did not pass on to insurance companies the millions of dollars in underpayments for care by Medicaid and Medicare, the so-called "cost shift" that has been a key driver for many years in rising insurance premiums. The 0.72% increase is being proposed at a time when the medical inflation rate for 2018 is expected to be 6.5%.
Two areas that have contributed to cost reductions are a combined savings of $38.6 million in supply chain costs in the past 6 years, and lower borrowing costs due to an improved bond rating.
The rate request does not include Porter Medical Center, because it only became part of the organization in April. The request was made as part of the annual hospital budget submission process to the State and will be reviewed by the Green Mountain Care Board this summer.
About the University of Vermont Health Network
The University of Vermont Health Network is a six-hospital system serving the residents of Vermont and northern New York with a shared mission: working together, we improve people’s lives. The partners are:
- The University of Vermont Medical Center
- The University of Vermont Health Network – Alice Hyde Medical Center
- The University of Vermont Health Network – Central Vermont Medical Center
- The University of Vermont Health Network – Champlain Valley Physicians Hospital
- The University of Vermont Health Network – Elizabethtown Community Hospital
- The University of Vermont Health Network - Porter Medical Center
Source: UVMHN 7.7.2017. Photo of the UVM Medical Center. Courtesy photo.