Vermont is moving closer to starting a state-run health plan that would be able to insure nearly all of its residents. The governor of Vermont has signed a bill that will create a panel to begin looking into how to pay for such a system. The ultimate goal is to establish the Green Mountain Care health exchange. The exchange will set reimbursement rates for healthcare providers in order to streamline administration into a single, unified system.
Mike Stephens, former CEO of Hoag Memorial Hospital Presbyterian, says, “I'm all for learning how a single government insurance program would work. Let's let the Vermont plan operate in comparison to what happens in Massachusetts. We may find that a government sponsored insurance program will, like Medicare, be very acceptable to the insured.” Stephens points out that insurance companies, healthcare providers, a few major employers and conservative politicians will likely oppose the idea.
If the plan does get off the ground in Vermont, residents and small employers would be able to compare rates from various plans and enroll for coverage of their choosing. But its sponsors say the outcome is far from certain. The plan will be phased in over several years if all goes well, with an evolving financial structure that mandates a number of conditions.
Ed Howe, former president and CEO of Aurora Health Care, says many people think that a single payer system is the way to go. “A Vermont experiment would be a good test,” says Howe. “The Massachusetts experiment, which is close to what President Obama wants, seems not to be working real well. Perhaps a third state should experiment with a plan that requires more personal responsibility and economic choices for consumers. It is very clear that the status quo will not be sustainable.”
Howe notes that more real-world healthcare options might lead to a greater understanding of what works and what does not work. So perhaps testing ideas in several different states would bring clarity to this complicated healthcare dilemma of getting costs under control.
Ed Howe and Mike Stephens blog regularly at Action for Better Healthcare.