Yes to a Balanced Plan for Universal Health Care in VT

Vermont has long been a leader in providing quality health care coverage, and now we have an opportunity as a state to demonstrate how to deliver an affordable and comprehensive universal healthcare system. This system could potentially save Vermonters half a billion dollars a year in overall healthcare costs, which is great news for small businesses.

Currently, it’s estimated that Vermonters spend about $2.7 billion annually on health care premiums and out of pocket costs, and although it seems like a big price tag, the $2-$2.2 billion anticipated cost for Green Mountain Care will be an overall decrease. In addition, taking employers out of the health insurance provision system means we'll no longer need to administer health insurance, reducing our overhead. The implementation of universal healthcare presents us with a unique opportunity to benefit the entire state.

In order to achieve these benefits for small businesses and our employees, however, it’s critical that we find the right balance in the financing plan - one that won’t hurt small businesses like ours or hard working Vermonters.

According to the December 5th VT Digger article that reported a leak from the Governor’s Advisory Council, an 8% payroll tax could be a part of the financing package for Green Mountain Care.  While 8% sounds like a reasonable starting point for the conversation about payroll tax contributions, we’re eager to learn more about the details.  Specifically, how will the payroll tax be phased in for small businesses that aren’t currently offering a healthcare benefit to their employees?  And, given that currently the average employee premium contribution covers about 80% of the cost, we would have serious concerns about any plan that shifted that balance too quickly, hurting working Vermonters.  Any eventual cost shift needs to allow time for the benefits of universal healthcare and the cost savings we will see from improved health outcomes to flow to everyone.  

These will be important details to clarify and to work on with the legislature once the administration’s proposal is released and no matter what the standard payroll tax rate ends up being.  

Just as important as the balance of the financing plan is the coverage it provides.  As founding members of Main Street Alliance, we support a plan that restores Vermonters to at least the coverage that was available under our Catamount Health Plan and Dr. Dynasaur and that includes dental and vision.  We should not roll back the progress that Vermont has already made on this point and we support those who are calling for a higher Actuarial Value -– the better the policy, the better it is for Vermont.  

As small business owners in Vermont, we're excited about the opportunity to stay engaged in this process.  We are looking forward to the release of the Administration’s full plan later this month and to working with the legislature next year.  We know that in the long run and done right, universal healthcare will save everybody money. When everybody saves money, they have more to circulate back into the local economy, and that's good for Vermont Main Street businesses and our employees.


This article was submitted by four of Main Street Alliance of Vermont's founding members:  Wayne Nelson, L.N. Consulting in Winooski, Melinda Moulton, CEO of Main Street Landing in Burlington, Trudy Trombley, The Boutique at Stowe Mercantile and Truly Trudy’s Cosmetics in Stowe, and Eliza Cain, Red Hen Bakery in Middlesex

The Main Street Alliance is committed to elevating the voices of small business owners to advance public policies that are good for small businesses, our employees, and the communities we serve.


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  • Thomas Kerwin
    commented 2016-10-03 02:32:39 -0700
    The state’s Democrat controlled assembly affirmed an administration run, government-financed medical services framework for all Vermonters. The state’s new Democratic senator, Peter Shumlin, marked the bill into law subsequent to battling on a promise to establish single-payer himself. A cost evaluation of the project, known as Green Mountain Care, was requested, yet since a long time ago postponed.

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