Vermont Regulator Orders UVM Medical Center to Cut Commercial Rates 4.4% Amid $75M Deficit
The Green Mountain Care Board voted 3-2 to require the University of Vermont Medical Center to reduce commercial insurance rates by 4.4% ($32.4 million) for fiscal year 2027, setting total patient revenue at $1.916 billion. The decision comes as UVM Health Network projects $75 million in losses this fiscal year and expects another $75 million deficit next year, driven by lower BlueCross BlueShield reimbursement rates and new state drug pricing caps. The network has already cut 140 jobs and plans $140 million in expense reductions. The rate cut primarily affects commercial payers, who account for $1.054 billion of UVM's allowed revenue, while Medicaid reimbursement levels are not addressed in this budget order.
State-mandated commercial rate cuts intensify pressure on Vermont's largest safety-net provider, potentially affecting Medicaid patients if reduced hospital margins lead to service cuts or reduced provider participation in Medicaid managed care networks.
Managed Care · Finance
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