It’s a perfect match to avoid a tax increase on Vermont’s job creators. Call your State Senator and tell them to oppose the House passed increase in the Employer Assessment Tax. Here’s how.
Below is the link to UVM Health Network (UVMHN) President Brumsted’s letter to the Green Mountain Care Board (GMCB) regarding the $29.1 million overage in net patient revenues (NPR) and his proposal to utilize these funds.
UVMHN letter to GMCB re budget plan 3-24-16
Notice the President explains the cause of this overage by three factors.
- First, UVMHN’s “bad debt and free care” costs were below budget estimates due to patients now covered by publicly subsidized insurance through Vermont Health Connect and Medicaid,
- Secondly, the complimentary side of the above factor, that the higher level of insured patients through Vermont Health Connect and Medicaid not only lowered “bad debt and free care” costs, but provided added revenues to UVMHN, and thirdly,
- Reduced Emergency Department utilization related to the new Express Care service offered by Central Vermont Medical Center.
The letter then proposes one-time investments of $12 million in affordable housing, mental health and substance abuse services, including $500,000 in UVMMC’s Community Health Investment Committee which also receives endowment funds. Further, the letter proposes funding UVMHN’s “transition costs of statewide ACO-based” All-Payer reforms and, depending on the outcome of negotiations on FY 17 Medicaid rate changes, the possibility of lower commercial insurance rates.
It’s clear from the President’s letter that the one-time $29.1 million increase in NPR was substantially driven by the lower related “bad debt and free care” costs and higher cash flows due to taxpayer funded Vermont Health Connect and Medicaid insurance.
Almost simultaneously to the President’s letter, as part of a $48 million package of increased taxes and fees, the House raised $10.3 million to cover the one-time costs of the 53rd Medicaid week in fiscal 2016, though the $10.3 million tax increase was not passed on a one-time increase basis but as a permanent source of on-going revenue.
Given the above, it seems quite reasonable and logical that the Green Mountain Care Board allow UVMHN, and other hospital networks, to use NPR one-time overages to cover their portions of the 53rd week of one-time expenditures. It’s a perfect match. With such a decision, for example, it will not be necessary to increase the employer assessment tax on Vermont’s businesses.
Such a decision to lower taxes on Vermont’s private sector would be fully in keeping with UVMHN’s 2016 draft Community Health Needs Assessment which cites “livable wages” as the 2nd highest feature of a strong, vibrant, and health community (Table 1) and “economic opportunities” (Table 3) as the 2nd rank need for community services.
https://www.uvmhealth.org/medcenter/Documents/CHNA-2016-DRAFT.pdf
In addition to contacting your State Senator, contact the GMCB and tell them to support the above plan to eliminate the proposed increase in the employer assessment. Here's where to contact GMCB:
http://gmcboard.vermont.gov/public_comment
Be Well,
Campaign for Vermont
We believe Campaign for Vermont offers substantive insight, information and advocacy on a non-partisan basis relative to Vermont's affordability crisis. We hope you have found value in the above presentation. A contribution of $50 dollars, $100 dollars or more would be greatly appreciated and well used to keep us working hard for you. We do recognize that not all of our supporters can afford this so a donation in any amount is highly valued. Please renew that support with a donation.