🏥 Gov. Scott Orders Review Of Small Business Health Coverage Vermont Agencies Directed To Develop Reform Plan 👇

Vermont Governor Phil Scott has signed Executive Order 05-26, directing state agencies to pursue both immediate regulatory changes and longer-term legislative proposals aimed at expanding affordable health insurance options for small businesses, self-employed workers, and individuals purchasing coverage on the private market. While the order requires agencies to prepare recommendations for the 2027 legislative session, it also instructs executive agencies to use their existing regulatory authority to begin implementing reforms where possible. The administration said the initiative is intended to improve affordability, increase consumer choice, and strengthen Vermont's individual and small-group insurance markets.

Among the order's most significant immediate directives, the Vermont Department of Financial Regulation has been instructed to begin the regulatory process allowing insurers to use age-based and tobacco-use premium rating when setting premiums. Vermont has been one of only two states that prohibited age-based premium rating, and the administration argues that allowing insurers greater pricing flexibility could reduce costs for younger adults while broadening participation in the insurance market. The order also directs agencies to evaluate additional reforms involving individual market reinsurance, health reimbursement arrangements, and other measures that could require legislative approval before implementation.

The executive order received support from the National Federation of Independent Business (NFIB), which said many small employers continue to struggle with rising healthcare costs and limited insurance options. Consumer advocates and healthcare organizations are expected to closely examine the proposed changes, particularly the potential effects that age-based rating could have on premiums for older Vermonters and overall market stability.

State agencies will now develop a comprehensive package of regulatory and legislative recommendations for the governor's consideration. Proposals requiring statutory changes or additional funding will be submitted to the Vermont General Assembly, while regulatory changes authorized under existing law may proceed through Vermont's administrative rulemaking process.

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