Three Vermont hospitals in the state’s largest health care system have asked regulators to increase prices they charge commercial insurance companies by less than one percent.
The University of Vermont Medical Center in Burlington and Central Vermont Medical Center in Berlin are seeking a .72 percent price increase. Porter Medical Center in Middlebury is seeking to keep prices flat.
Last year, regulators allowed the UVM Medical Center and Central Vermont Medical Center to raise prices by 2.45 percent, which was an historically low price increase for the academic medical center.
In April, regulators at the Green Mountain Care Board told UVM Medical Center and Central Vermont Medical Center that they were not allowed to raise prices on insurance companies by more than .72 percent.
That’s because the two hospitals took in $41.5 million more from treating patients than they regulators told them they were allowed during fiscal year 2016. Regulators required them to give back approximately one-quarter of that amount by lowering how much they increase prices in the upcoming fiscal year, 2018.
Porter Medical Center did not go over its budget in fiscal year 2016 and had no such regulatory requirement. The hospital developed its 0-percent price increase before formally becoming part of the umbrella network.
The UVM Health Network framed the proposed increase as “historically low.” Dr. John Brumsted, the chief executive officer for the UVM Health Network and the UVM Medical Center, said in a press release that the proposal is part of an effort by the hospital to lower health care costs.
“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,” Brumsted said.
“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,” he said.
The UVM Medical Center, which is an academic medical center with 562 beds, is the largest hospital in the state and accounts for about half of all the money spent in Vermont hospitals every year.
The network said in a press release that they expect medical prices to go up by 6.5 percent, even though the network’s hospitals are asking for a significantly lower price increase. The network said it has been able to save money through bulk purchasing power and borrowing at lower costs due an improved credit rating.
Regulators also required Southwestern Vermont Medical Center in Bennington to increase prices on commercial insurance companies by no more than 2.85 percent. The hospital submitted a budget with that exact price increase.
While regulators ordered Northwestern Medical Center in St. Albans to cut its prices by 1.1 percent, the hospital is asking to raise prices by 6 percent. While regulators ordered Northeastern Vermont Regional Hospital in St. Johnsbury to cap its price increase at 3.2 percent, the hospital is asking to raise prices by 4.25 percent.
The Green Mountain Care Board has scheduled hearings on Aug. 15 in Montpelier, on Aug. 17 in Rutland, on Aug. 22 in Burlington, and Aug. 24 in Montpelier.
After the hearings, the board usually approves or modifies budget proposals in September. The fiscal year then starts on Oct 1.
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