VT H0482

Green Mountain Care Board may order reductions to hospital reimbursement rates when a domestic health insurer faces acute solvency threats due to risk-based capital falling to regulatory action levels, but only for hospitals with more than 135 days' cash on hand and positive operating margins, or those in networks meeting similar criteria

Rate reductions cannot decrease a hospital's or network's projected days' cash on hand below 125 days, and hospitals may request relief from ordered reductions

Board gains authority to adjust commercial health insurance reimbursement rates to hospitals at any time during the fiscal year to ensure hospitals operate within established budgets

Board may appoint independent observers for hospitals that materially misrepresent information or are materially noncompliant with budgets; observers can monitor operations, obtain information, and report to the Board, with hospitals potentially required to pay observer costs

Independent hospital observer authority expires January 1, 2030; act signed by Governor on June 5, 2025