H 585 Vermont House · 2025-2026 Regular Session

An act relating to health insurance reforms

This bill (H 585) reforms health insurance company governance and pricing in Vermont. It requires health insurers to have boards where at least 75% of members are subscribers or public representatives (not providers), with the Governor appointing two public members. The bill also mandates a compensation committee with public representatives to review executive pay and limits primary care provider exemptions from prior authorization. Additionally, it allows limited age-based pricing in individual/small group insurance markets and begins implementing site-neutral billing for certain services. These changes directly affect health insurance companies operating in Vermont’s individual and small group markets.

Issues: ✓ Healthcare

Bill status passed 2 of 4 stages cleared

Introduction

Jan 2026

Committee Review

Mar 2026

House Failed

Mar 2026

Governor

Introduced Jan 7, 2026 Last action Mar 24, 2026

Maddy AI version diff · 2 comparisons

What changed between versions

As Passed By the House (UnofficialOpens in a new window) → As Passed By the House (OfficialOpens in a new window) · 3 edits · Mar 19, 2026

MINOR

The transition from the unofficial to official House-passed version of H.585 primarily removes a reporting requirement that would have mandated the Department of Financial Regulation to report to legislative committees by January 15, 2027 on the market impacts of expanding access to association health plans. The remaining changes are formatting and renumbering adjustments typical of the unofficial-to-official conversion, including updated page headers, removal of internal reference numbers, and addition of bill introduction metadata.

ENFORCEMENT

Removed a section requiring the Department of Financial Regulation to report to the House Committee on Health Care and the Senate Committees on Health and Welfare and on Finance by January 15, 2027 regarding the federal landscape, market impacts, rate review, and other information related to expanding access to association health plans beginning January 1.

TECHNICAL

Renumbered subsections in Section 4516a (Executive Compensation) from lettered sub-subdivisions (A), (B), (C) under (b)(1), (b)(2), (b)(3) to numbered subdivisions (1), (2), (3) directly under (b), without changing the substance of the compensation disclosure requirements.

Formatting changes throughout: page count increased from 25 to 49 due to expanded line spacing in the official version, internal 'VT LEG' reference numbers removed, headers changed from 'AS PASSED BY HOUSE' to 'BILL AS PASSED BY THE HOUSE', and bill introduction information (sponsors, committee referral, subject, statement of purpose) added at the top.

As IntroducedOpens in a new window → As Passed By the House (UnofficialOpens in a new window) · 3 edits · Mar 19, 2026

MINOR

The House removed all provisions related to limited age rating (which would have allowed insurers to vary premiums by up to 5 percent based on age starting in the 2028 plan year) along with associated annual reporting requirements for hospital service corporations, medical service corporations, and HMOs. The House added a new requirement for the Department of Financial Regulation to report by January 15, 2027 on the federal legal landscape and projected market impacts of expanding association health plan access. The bill retained its provisions on insurer governance, executive compensation transparency, association health plan expansion, high-dollar claims definition, and site-neutral billing.

SCOPE

Removed four sections that would have allowed limited age rating in individual and small group health insurance starting in the 2028 plan year, with premiums deviating no more than five percent above or below the community rate. Also removed associated annual reporting requirements for hospital service corporations (section 4516), medical service corporations (section 4588), and HMOs (section 5115) that included non-discrimination certifications.

REQUIREMENT

Added a new section requiring the Department of Financial Regulation to report to the House Health Care Committee and Senate Health and Welfare and Finance Committees by January 15, 2027 on: (1) the status of federal law regarding association health plans and whether expanded access would be permitted starting January 1, 2028; (2) projected impacts on Vermont's individual and small group markets including enrollment and premium effects using scenarios showing various percentages of healthier lives leaving those markets; and (3) in consultation with the Green Mountain Care Board, the potential impact on rate review responsibilities.

TECHNICAL

Reorganized the definition of 'provider' from section 4513(a) into section 4513a(a)(1), consolidating definitions within the board of directors section rather than the permit section. Section numbering shifted as a result of the removed age rating sections.

Floor votes · House Mar 19, 2026

How they voted

26–96

Failed · 18 other

Total votes 140

Mar 19, 2026

D Democratic83

75 Nay 8

90% Nay

I Independent3

3 Nay

100% Nay

R Republican54

26 Yea 18 Nay 10

48% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Mar 24, 2026

Introduced

Read 1st time & referred to Committee on Finance

upper

Mar 19, 2026

Introduced

Rep. Harvey of Castleton moved to amend the bill

lower

Mar 19, 2026

Vote failed

House Vote: fail (26-96-18)

house

Mar 18, 2026

Lower · Passed

Report of Committee on Health Care agreed to

lower

Mar 18, 2026

Lower · Passed

Rep. North of Ferrisburgh moved to amend the report of the Committee on Health Care

lower

Mar 18, 2026

Lower · Passed

Rep. Logan of Burlington moved to amend the report of the Committee on Health Care

lower

Mar 18, 2026

Lower · Passed

Rep. McFaun of Barre Town reported for the Committee on Health Care

lower

Mar 18, 2026

Introduced

Action Calendar: Favorable with Amendment

lower

Mar 17, 2026

Introduced

Notice Calendar: Favorable with Amendment

lower

Jan 7, 2026

Introduced

Read first time and referred to the Committee on Health Care

lower

2 primary · 0 co-sponsors