Scott’s Executive Order on Health Insurance – Julie Wasserman
Scott's Executive Order on
To the Editor:
Under the Governor's Order, older Vermonters and those who use tobacco products will pay more for health insurance. These changes are contrary to
Yet, the Governor recently vetoed legislation that would have fast-tracked the implementation of a tool (reference-based pricing) to address
The Order mandates higher cost "age-based" commercial insurance premiums. However, this mandate will not apply to older Vermonters, most of whom are covered by Medicare, our publicly financed national health insurance program for those 65 years old and older.
What are the thresholds for these new "age-based" premiums? 40-49 years old, 50-59, and 60-64? Will these higher cost plans cause Vermonters to leave the state?
With regard to tobacco use, the majority of Vermonters who smoke cigarettes have a high school education or less and live in lower income households. Do we want them to pay more for health insurance when they can't afford current coverage?
The Governor's Executive Order will likely result in increased costs for young Vermonters, the very group whose health insurance premiums he hopes to lower.
How will the State implement its tobacco use policy? Will there be a different rate for people who occasionally use tobacco versus pack-a-day smokers? Will the policy distinguish between smoking, vaping, and nicotine pouches? And how will the State and insurers determine whether those who deny tobacco use, actually refrain from it? Administrative costs could grow along with the loss of privacy. Do we want to give insurance companies even more access into our personal lives?
Comprehensive health coverage is a societal necessity because all of us are at risk of an accident or an illness.
The purpose of insurance is to distribute financial burdens across a large group of people, ensuring that no one person is devastated by high costs. Pooling as many people as possible into one large group (aka "spreading the risk") lowers insurance costs for everyone.
Will this unraveling of community rating usher in untoward practices where employers screen out 40+ year old job applicants and those who use tobacco? Will the Governor employ higher rates for age and tobacco use with State employees, leading to greater costs for both employees and the State who pays their premiums? Will this Executive Order undermine the State's
Simply stated, age-based and tobacco-based insurance policies are discriminatory and inequitable. They are also divisive and adversarial, pitting one group against another.
Vermonters tend to be fair-minded and emboldened with a strong sense of social justice.


'Pray nothing major happens'
How to Read the “Loss Settlement” Section of Your Home Insurance Policy
Advisor News
- The conversation almost no advisor is having yet
- Why advisors should offer retirement-longevity planning
- A hybrid approach outperforms the 4% Rule, researchers find
- The missing piece in most retirement plans
- Clients are bringing TikTok insurance advice into advisor meetings
More Advisor NewsAnnuity News
- Sammons Enterprises & Sammons Financial Group Respond to Reports
- The Manhattan Life Insurance Company Acquires Union Security Life Insurance Company of New York
- Cayman Islands premier to meet with U.S. reinsurance regulators
- Investigation finds deceptive sales, churning of annuities targeting postal workers
- Corebridge annuity sales slip ahead of Equitable marriage
More Annuity NewsHealth/Employee Benefits News
Life Insurance News
- Americans without children are less confident about retirement, Allianz finds
- The conversation almost no advisor is having yet
- DELAWARE INSURANCE DEPARTMENT DETAILS REVIEW OF BRIGHTHOUSE ACQUISITION
- Sammons Enterprises & Sammons Financial Group Respond to Reports
- Court losses bring Greg Lindberg fraud victims closer to restitution
More Life Insurance News