OneCare
This week the Senate Health and Welfare Committee took testimony on S.290, the Health Care Reform Bill. A number of advocates talked about the need for increased oversight of the Accountable Care Organization (ACO- or OneCare). The bill would introduce additional reporting requirements for OneCare. It also expands the Green Mountain Care Board’s authority over rate setting between hospitals and insurers, price transparency, and contracts with designated agencies. Additionally, it caps rate increases for administrative costs for insurers and requires AHS to report back to the Legislature on the impacts of joining the ACO for state employees. This bill will most likely be the primary bill in Senate Health and Welfare to which I would expect them to add additional healthcare related initiatives.
OPEB/Pensions
Brad Ferland, Deputy Secretary of Administration, testified in Senate Appropriations Tuesday on the unfunded pension and OPEB liabilities. Although Treasurer Pearce has asked the Legislature to prefund the teacher’s OPEB this year with additional monies, the Administration has asked them not to do this. Ferland said that instead of placing more money in teacher’s OPEB, the money should be a part of a four-bucket strategy in order to understand the whole picture of unfunded liabilities.
Actuarial tables have changed for a number of reasons since the original 2008 amortization schedule the Legislature agreed to. This has largely been due to changes in expectations with regard to investment returns, mortality tables have changed, retirement ages, turnover rates, etc.
Adam Greshin, Commissioner of Finance and Management, told the Committee that since 2007 the State has been contributing at least 100% but often more in accordance with actuarial requirements. In 2008 pensions and OPEB accounted for about $30 million and about 2.5% of the general fund budget. These payments have become about 12% of the State’s general fund budget at $199 million in FY2021.
Ferland said the Governor’s Office has been working closely with the Treasurer’s Office to determine what can be done to address the liabilities. He said they have looked at a number of things, including renegotiating the pharmacy benefit manager contracts and looking at things like stress testing the expected investment rate of return. They did not come to the Committee with suggestions on how to fix this but told them these decisions would be left up to the Legislature.
Sen. Kitchell (D-Caledonia) told the room this is the beginning of a very important conversation. I’ve attached a PDF of their presentation.
Older Vermonters Act
This week the House Human Services and Senate Health and Welfare Committees took testimony on H.661, the Older Vermonters Act. The bill aims to take steps to finalize and implement a master plan for aging, similar to what has been done in California. The committees heard from Gretchen Alkema, Ph.D.. V.P. of the SCAN Foundation, that is working with states on these initiatives. They also heard updates from the Department of Disabilities, Aging & Independent Living on establishing a plan here in Vermont. It is unclear at this point whether or not the bill will move forward in its original form, or if perhaps pieces of the bill will be incorporated into other legislation.
The only bill that moved this week was the Miscellaneous Retirement Bill (H.922)(highlighted in Green). It will be up for Third Reading in the House next week and upon passage will be messaged to the Senate. S.290 and H.661 are in blue because they were discussed in committees this week.
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H. 661
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Rep. Wood
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Read First Time and referred to House Human Services
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Establishes an Older Vermonters Act- support system for Vermonters over 60
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Rep. Noyes
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H.649
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Rep. Sullivan
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Read First Time and referred to Committee on Gov. Ops 1/10/20
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Requires an equal share of administrative costs between Vermont Employees Retirement System and the State Teachers Retirement
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Rep. Browning
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S.290
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Sen. Lyons
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Read First Time and referred to Senate Committee on Health and Welfare 1/14/20
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An act relating to health care reform implementation
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S. 137
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Sen. Lyons
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Read First Time and referred to Senate Committee on Finance 2/27/19
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Act relating to health insurance coverage for hearing aids
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Sen. Balint
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H. 348
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Rep. Patt
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Read First Time and referred to Committee on Health Care 2/21/19
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Act relating to health insurance coverage for hearing aids
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S. 287
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Sen. Pollina
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Read First Time and referred to Senate Committee on Government Operations 1/14/20
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An act relating to the contractual rights of members of the Vermont State Employees’ Retirement System
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S. 286
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Sen. Westman
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Read First Time and referred to Senate Committee on Government Operations 1/14/20
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An act relating to the membership of the Vermont State Employees’ Retirement System
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H.677
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Rep. Webb
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Read First Time and referred to House Ways and Means 1/14/20
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An act relating to Vermont’s income tax deduction for medical expenses
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H.695
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Rep. Bancroft
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Read First Time and referred to House Ways and Means 1/14/20
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An act relating to the income tax exemption for Social Security
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S.306
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Sen. Hooker
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Read First Time and referred to Senate Committee on Government Operations 1/16/20
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An act relating to raising an income tax surcharge in order to reduce State retirement liabilities
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H. 790
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Rep. Gregoire
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Read First Time and referred to House Ways and Means 1/21/20
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Act relating to exempting social security income from Vermont’s personal income tax
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H. 791
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Rep. Gregoire
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Read First Time and referred to House Ways and Means 1/21/20
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Act relating to exempting military retirement pay from Vermont’s personal income tax
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Rep. Hango
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H. 792
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Rep. Yacovone
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Read First Time and referred to House Ways and Means 1/21/20
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Act relating to imposing an income tax surcharge to reduce State retirement liabilities
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H. 801
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Rep. Donovan
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Read First Time and referred to House Education 1/21/20
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Act relating to statewide public school employee health benefits
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H. 818
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Rep. R. Hooper
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Read First Time and referred to House Government Operations 1/21/20
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Act relating to the contractual rights of members of the Vermont State Employees’ Retirement System
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H. 839
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Rep. Canfield
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Read First Time and referred to House Ways and Means 1/22/20
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Act relating to tax relief for retired military, working youth, and renters
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H. 840
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Rep. R. Hooper
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Read First Time and referred to House Ways and Means 1/22/20
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Act relating to exempting pension income from State taxation
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H. 846
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Rep. Noyes
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Read First Time and referred to House Commerce & Econ. Dev. 1/22/20
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Act relating to exempting military retirement pay from Vermont’s personal income tax and recruiting military veterans
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H. 848
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Rep. Beck
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Read First Time and referred to House Government Operations 1/22/20
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Act relating to a new State Employees’ Retirement System and State Teachers’ Retirement System
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H.906
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Rep. Sandy Haas
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Read First Time and referred to House Government Operations 1/28/20
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An act relating to accrual of creditable service in the Vermont State Retirement System
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H. 913
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Rep. Browning
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Read First Time and referred to House Government Operations 1/30/20
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Act relating to stress testing the Vermont State Retirement System and the State Teacher’s Retirement System
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Misc. Tax Bill
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Committee on Ways and Means
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Still in Committee, not introduced
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Miscellaneous Tax Bill- MAGI, Retirement Income Tax Discussion
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H. 922
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Committee on Gov. Ops.
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Passed Second Reading 2/14
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Act relating to miscellaneous amendments to the Vermont State Employees’ Retirement System
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