Vermont Premiums are the Most Expensive in the Country
VT Healthcare 911 (VHC911) is a politically diverse “coalition for impact” made up of business leaders, union workers, healthcare providers, Republicans, Democrats, Progressives and Independents. We are committed to a data-driven discussion that compares healthcare costs across the region and nation.
Vermont's premiums are the most expensive in the country, creating a healthcare emergency for our businesses, public institutions, private and public-sector employees, farmers, taxpayers, and anyone living in Vermont.
Between 2018 and 2025, the monthly cost for the bronze (lowest cost) commercial insurance plan in Vermont grew from $422 to $808, which is nearly double the cost in Maine ($464), almost triple the cost in New Hampshire ($272), and more than twice the national average ($381).
The Kaiser Family Foundation shows that the average annual health insurance premiums for family coverage have increased 12% since 2018; in Vermont the growth has been 92%.
Hospital costs are the main driver of premium increases. VHC911, therefore, has analyzed public data to help policy makers focus on hospital budgets. Since 2021, our hospital costs have grown from 35% to 44.5% of our healthcare spending (reaching $3.8B). Almost half of all healthcare spending in Vermont is in hospitals, more than regional and national averages.
Fortunately, VHC911's analysis demonstrates ample room for savings in hospital budgets without reducing patient care. Direct comparison of salaries for administration & management, which is a portion of General Services salaries that support hospital operations, shows that some Vermont hospitals are spending substantially more than their peers. For example, 71% of UVMMCs General Services spending goes to Administration & Management compared to 43% for their comparators. Vermont's five Small City Rural hospitals are double their peers on this metric. Vermont’s Rural Critical Access hospitals salary expenditures are more in line with counterparts.
If Vermont’s hospitals adopted a salary expenditure profile more like regional peers, we would see significant savings. Furthermore, Vermont’s non-patient salary costs used to be more in line with peers but have been steadily growing faster than comparators over the last decade. The most rapid differentiation from comparators has occurred since 2019.
Vermont has many tools in place to quickly address our inflated hospital administration costs. The governor and legislature are focused on affordability. The Green Mountain Care board has significant power to regulate both hospitals and insurers. Now, VHC911 adds a motivated coalition dedicated to bringing down insurance premiums, and to pushing for re-investing healthcare money in community-based primary care, mental health, and preventive care.
In a time of deep political division, VHC911 is dedicated to maintaining a broad coalition where business owners, non-profit leaders, educators, union workers, doctors, nurses, medical technicians, and political leaders unite to demand relief in healthcare costs and achieve an affordable healthcare system.
VHC911 believes our hospitals are a vital part of a strong healthcare system and our communities. We also believe hospitals must be run efficiently so most healthcare spending is focused on patients.
VHC911 is asking Vermonters to join our effort, share healthcare stories and learn how our hospitals compare to counterparts in New England and beyond by visiting www.VHC911.org. Together we can bring healthcare costs under control by relying on data, working together and demanding a sustainable healthcare system for our rural state.