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Introduced by Representative O’Donnell of Vernon

Referred to Committee on


Subject:  Health; Medicaid; Catamount Health; cost shift

Statement of purpose:  This bill proposes to require a committee to study and report annually to the general assembly on the Medicaid cost shift and its impact on health care financing.


It is hereby enacted by the General Assembly of the State of Vermont:

Sec. 1.  18 V.S.A. § 9409b is added to read:


(a)  By August 1, 2008, the administration and the general assembly shall create a bipartisan committee with no fewer than ten members or identify an existing bipartisan committee capable of a timely analysis of the Medicaid cost shift to develop:

(1)  a definition of the Medicaid cost shift by considering different standards, including Medicare and provider costs;

(2)  ways to quantify the contribution of Vermont’s Medicaid program to the Medicaid cost shift;

(3)  ways to quantify the effects of the cost shift on other health care spending, including health insurance premiums and out-of-pocket spending, as well as the impact on property taxes; and

(4)  a five-year plan to ensure sustainable financing for Vermont’s health care programs, including Medicaid and Catamount Health.

(b)  Beginning January 1, 2009 and annually thereafter, the committee shall report to the general assembly:

(1)  in total and for each major provider type, an estimate of the amount of the Medicaid cost shift for the current and following fiscal years;

(2)  an analysis of whether Catamount Health and other health plans receiving state monies have sustainable funding sources, including an analysis of the impact on the cost shift of any changes to such plans;

(3)  an estimate of the impact of the cost shift on other health care spending;

(4)  an estimate of the state funds necessary to eliminate the Vermont component of the Medicaid cost shift; and

(5)  an analysis of progress toward sustainable financing of health care in this state.

(c)  Within 30 days following passage of the state budget, the committee shall provide the general assembly with an estimate of the projected impact on the cost shift and other health care spending of legislation passed during the current legislative session, if the general assembly is still in session, or the most recent adjourned session, if the general assembly is no longer in session.

Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont