From Yahoo Finance: 2025-05-08 20:00:00

Blue Cross Blue Shield of Vermont CEO Don George has been warning of financial struggles due to rising hospital and prescription costs, depleting reserves, and unaffordable premiums. He requested a 4% increase in reserve contributions and expressed gratitude for support from stakeholders in stabilizing the company.

To address financial challenges, Blue Cross VT has implemented a capital recovery plan, expanded affiliations, reduced risks in Medicare Advantage, cut administrative costs, and supported legislative protections. They aim to offer quality plans, advocate for affordability, and address high hospital and drug costs contributing to unsustainable care expenses.

Member reserves fell to $58.4 million in 2024, prompting regulatory oversight. George cited complex care needs and high claims costs as contributors. Despite some positive developments, the cost of care remains high, requiring ongoing financial support. A recent settlement with UVM Health Network is seen as a reset, not a solution.

George emphasized the need for long-term actions to address rising spending, citing the inadequate $12 million settlement and the need for pricing limitations and utilization controls. He called for stability in the health system and organization to ensure sustainable care for Vermonters.

Read more: Progress has been made, but health care costs ‘simply unsustainable’