Blue Cross Blue Shield Vermont
LEGISLATIVE REPORT

For the Week Ending April 15, 2005

The House Appropriations Committee gave its endorsement to a state-run, publicly financed health care system on a 7-4 party line vote Friday afternoon. The committee approved some minor amendments to the bill (H.524) that will be up for full House debate this week.

H.524 was crafted and approved earlier by a House Health Care Committee that had been created specifically this session to propose comprehensive health care reform. A new Democratic majority elected in November encouraged supporters of a state-run single payer health care system to act on their decades long hope to restructure Vermont’s health care financing system.

The bill restructures state government to facilitate planning, regulation and oversight of the proposed new system, authorizes studies of the economic impact of the plan and its financing, establishes a process for public input over the next several months, and establishes dates in 2007 for implementation. The bill also provides assistance to specific projects such as support for additional federally qualified health clinics, information technology pilot programs, and assistance for Medicare supplemental programs.

While the Appropriations Committee was considering the legislation, the House Health Care Committee continued to hold hearings on the bill in preparation for the House floor debate. Administration officials that had issued memorandums critical of the proposal and who were raising questions about provisions in the bill were invited before the committee. BISHCA Commissioner John Crowley and OVHA Director Joshua Slen both appeared before the committee Friday.

Meanwhile, a group of organizations representing Vermont businesses were preparing to announce an alternative to the House proposal. The group has been meeting for weeks to develop and prepare their plan. Representatives of the business group met with Governor Douglas also on Friday and are expected to announce their plan prior to the House debate this week.

In other State House activity, the Senate Health and Welfare Committee released a draft bill that would codify existing practices and arrangements of home health agencies in Vermont. The bill would give state legislative endorsement to Vermont’s existing practice of allowing only community-based, non-profit home health agencies. That policy is being challenged by a for-profit nursing service, and the policy is being questioned by the U.S. Justice Department as a possible violation of federal restraint of trade provisions. The highly charged and controversial dispute will continue in the coming weeks with the deliberation over the proposed draft.

And, in addition to the House debate on health care reform this week, the House Human Services Committee is expected to make key decisions on two mental health bills. H.404 would prohibit health plans from creating selective networks of providers, and H.411 would prohibit health plans from managing mental health benefits when the underlying physical health benefits are not managed benefits. This bill also has a provision that would not allow health plans to subcontract their mental health benefits administration to an outside organization.

For more information on legislative proposals, visit the Blue Cross and Blue Shield of Vermont website at www.bcbsvt.com or call Leigh Tofferi at (802) 223-6131 or Kathy Parry at (802) 371-3205. If you would prefer to receive these updates by FAX or e-mail, wish to discontinue receiving these updates or know of anyone else who would like to receive it, please call Kathy Parry at the above number or send an e-mail to parryk@bcbsvt.com
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