It’s open enrollment for people who buy their health insurance through the state’s marketplace, Vermont Health Connect. And for the 35,000 or so people in Vermont who get insurance on the individual market, all but the highest income earners qualify for subsidies to make coverage more affordable.
Those subsidies are particularly generous for 2025.
“Many Vermonters this year are going to be eligible for better coverage health plans at lower out-of-pocket monthly premium costs than they would have in previous years,” said Alex McCracken, director of communications of the Department of Vermont Health Access, which runs Vermont Health Connect.
That’s despite the fact that insurance rates jumped by double digits for next year — 14% for MVP Health Care and 20% for BlueCross BlueShield of Vermont — for the third year in a row.
“We’ve been able to find a way to use some of the federal rules to draw down some extra subsidies,” said Mike Fisher, the state’s chief health care advocate.
There’s tens of millions of dollars in subsidies available to Vermont, if Vermonters do shop.Mike Fisher, Vermont's chief health care advocate
He emphasized that there’s a big price difference this year between the two carriers, and he encouraged people to look at all the plans available before buying one. They can use the state’s plan comparison tool, get help in person, or call the health care advocate help line or Vermont Health Connect directly.
“There’s tens of millions of dollars in subsidies available to Vermont, if Vermonters do shop,” Fisher said. “If Vermonters don’t, they’ll have higher premiums, and the state won’t draw down those moneys.”
For several years, COVID relief policies have allowed more people to qualify for subsidies to pay for health insurance — technically federal tax credits. Under the current law, the cost of certain health insurance plans is capped at 8.5% of household income. That’s been a huge help to many middle-income earners, like someone who makes just over $60,000 a year.
Those extra subsidies expire at the end of 2025 without an extension from Congress.
“I think it’s fair to say those chances got substantially less after Election Day,” Fisher said.
Right now, Vermont has one of the lowest uninsured rates in the country, but it has the highest prices nationwide for individual health coverage. That makes these subsidies particularly helpful in Vermont, Fisher said.
“It leads to a very big concern for me and for others that are worried about access to care, about Vermonters' ability to afford decent coverage after 2025.”
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