Ask the Right Questions - Peter J. Wright, CEO - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Health/Employee Benefits News
Newswires RSS Get our newsletter
Order Prints
March 21, 2025 Newswires
Share
Share
Post
Email

Ask the Right Questions – Peter J. Wright, CEO

Staff WriterThe Caledonian-Record

Ask the Right Questions

To the Editor:

As we digest the results of Town Meeting Day, the focus on taxes and school budgets continues to be the topic at every water cooler and community store.

There is no argument that employee wages and benefits are the single largest driver of school spending and within that, health insurance premiums and healthcare costs draw the most focus and attention. The real question is: Were we asking the right "why" when it comes to school spending and how much health care accounts for those costs?

Let me start by saying that our schools, just like our hospitals, are foundations to healthy communities. Pitting one against the other is not a recipe for success. In Franklin County, we want and deserve to have great schools. We also deserve great health care close to home.

Some will have you think that healthcare costs are being driven up by "out-of-control hospital spending"; however, the facts are healthcare spending is a simple equation, rate x volume. Both are relevant, but a deeper look shows a different story. For example, no Vermont hospital was granted a rate increase more than 3.4% for the current budget year. In point of fact, while individual rate increases do vary, Northwestern Medical Center (NMC), serving Franklin and Grand Isle counties, has been granted an overall average of less that 3.87% per year dating back to 2011. This is in line with inflation and below health care inflation. Furthermore, expense growth has averaged 3.5% for the last six years demonstrating our commitment to our employees and the need to be very prudent financial stewards.

At the same time, "case mix index" (a reflection of how sick the average patient is) of Vermont patients increased by 10.8% between 2014 and 2022. Think about that for a moment, the average patient is nearly 11% sicker now than a decade ago. That is staggering. Obviously, a sicker patient is more expensive to care for.

In addition, healthcare spend ing has been impacted by equally significant increases in volume. For the last several years, many Vermont hospitals came under fire for long wait times to get an appointment, NMC being one. Pre-pandemic (2014 to 2019) outpatient visit volumes dropped nearly 3% across Vermont. The directive from the Green Mountain Care Board (GMCB) was to "open access" and shorten wait time for service. Hospitals and healthcare providers across the state heeded the call. As a result, and excluding the obvious outlying drop of 12.2% in 2020, outpatient visits surged by 7.9% when compared to pre-pandemic levels. Naturally, increasing access means more patient visits and that added volume, which was significant at all hospitals and provider locations across Vermont, is reflected in the significant increase in spending that schools and municipalities have been experiencing as well. It's undeniable that added volume and severity of illness are the main drivers of healthcare spending increases, not out-of-control hospital spending. Other questions for Vermonters to think about are, how is your insurance plan structured? Are there incentives for covered staff members to seek primary care first, then urgent care and the emergency department as a last resort? Are staff members encouraged to "price shop" services that are not urgent or emergent, i.e. diagnostic imaging, labs, therapy and specialty services? You should know that there are no such requirements and incentives for government insured patients (Medicare, Medicaid, etc.) whose low reimbursements to providers contribute significantly to increased commercial insurance premiums. Without these incentives (i.e. when price doesn't matter), human nature is to seek the easiest, most convenient location.

So, as we continue our conversations with Town Meetings behind us, I urge you to know the "why" and ask more questions. This will be more important than ever as the Legislature begins to raise questions of its own. There's no doubt that affordability is on all of our minds. For NMC's part, we'll continue to be the low-cost provider in our state and strong financial managers while still delivering the highest quality care in an ever changing landscape. Our community deserves no less.

Peter J. Wright, FACHE is the President and Chief Executive Officer of Northwestern Medical Center in St. Albans Vermont. He is board certified in healthcare management and a Fellow of the American College of Healthcare Executives. Mr. Wright received his bachelor's degree from Lyndon State College, a master's in administration from St. Michael's College and a master's in healthcare delivery science from Dartmouth College's Tuck School of Business and Geisel School of Medicine.

Peter J. Wright

St. Albans, Vt.

Note: Peter J. Wright is the President and Chief Executive Officer of Northwestern Medical Center.

Older

Oklahoma ACA health insurance costs could rise sharply if federal aid ends, insurance commissioner says

Newer

Bill would provide firms refundable tax credit for health-plan premiums

Advisor News

  • IRS CEO FRANK J. BISIGNANO VISITS OHIO TO TOUT WORKING FAMILIES TAX CUTS PROVISIONS ON NO TAX ON CAR LOAN INTEREST, NO TAX ON OVERTIME, ENHANCED DEDUCTION FOR SENIOR CITIZENS
  • The hidden flaw in insurance AI adoption for advisors and carriers
  • Rising healthcare costs impact 401(k) accounts
  • What advisors think about pooled employer plans, alternative investments
  • AI, stablecoins and private market expansion may reshape financial services by 2030
More Advisor News

Annuity News

  • How annuities can help protect retirees from financial scams
  • MetLife Inc. (NYSE: MET) Climbs to New 52-Week High
  • The Standard and Pacific Guardian Life Announce Entry into Agreement to Transition Individual Annuities Business
  • AuguStar Retirement launches StarStream Variable Annuity
  • Prismic Life Announces Completion of Oversubscribed Capital Raise
More Annuity News

Health/Employee Benefits News

  • Health insurers again propose double-digit premium increases
  • The United States may be the best place to build universal healthcare
  • STEINHARDT BILL TO IMPROVE COVERAGE FOR LIPEDEMA PATIENTS PASSES COMMITTEE
  • US: Medicaid Work Requirements Risk Coverage Loss for Millions of People
  • Trademark Application for “EVERYDAY INCREDIBLE” Filed by SSM Health Care Corporation: SSM Health Care Corporation
More Health/Employee Benefits News

Life Insurance News

  • Data verification: Modernizing life insurance for the digital consumer
  • The hidden risks of indexed universal life and what advisors should know
  • ATTORNEY GENERAL BROWN ANNOUNCES PRINCE GEORGE'S COUNTY INSURANCE AGENT CHARGED WITH FELONY THEFT AND INSURANCE FRAUD
  • Bowie insurance agent indicted on felony theft, fraud charges
  • Bowie insurance salesman indicted in connection with fraud, felony theft
More Life Insurance News

- Presented By -

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Why Blend in When You Can Make a Splash?
Pacific Life’s registered index-linked annuity offers what many love about RILAs—plus more!

Life moves fast. Your BGA should, too.
Stay ahead with Modern Life's AI-powered tech and expert support.

Bring a Real FIA Case. Leave Ready to Close.
A practical working session for agents who want a clearer, repeatable sales process.

Discipline Over Headline Rates
Discover a disciplined strategy built for consistency, transparency, and long-term value.

You Could Be Losing Up to 20% of Your Commissions
GreenWave helps you find, fix, and prevent commission errors.

Press Releases

  • Rockwood Programs Appoints Kerry Ladouceur as Vice President, Financial Lines
  • JP Insurance Group Launches Commercial Property & Casualty Division; Appoints Joe Webster as Managing Director
  • Sequent Planning Recognized on USA TODAY’s Best Financial Advisory Firms 2026 List
  • Highland Capital Brokerage Acquires Premier Financial, Inc.
  • ePIC Services Company Joins wealth.com on Featured Panel at PEAK Brokerage Services’ SPARK! Event, Signaling a Shift in How Advisors Deliver Estate and Legacy Planning
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.
Insurance News | InsuranceNewsNet