Shumlin Bows To Business Community On Health Care Plan

AP/ Toby Talbot

Gov. Peter Shumlin, right, and Speaker Shap Smith hold a news conference on health care in Montpelier. Shumlin and legislative leaders want to make it easier for more of the state's small businesses to offer high-deductible health insurance plans.

(Host) The debate over health care this session at the Statehouse became less contentious on Monday when Governor Peter Shumlin adopted several key provisions backed by the state's business community.

Shumlin says he was spending "too much energy" on the specific issues and he wants keep his focus on his plan to implement a single payer health care system as soon as possible.

VPR's Bob Kinzel reports.

(Kinzel) Over the past few weeks, many members of the state's business community have complained that the Governor's plan for 2012 was inflexible and would end up raising premiums. In a surprise move, Shumlin made the changes that these business leaders are seeking.

Beginning in 2014, all small businesses and people in the individual market will be required to purchase their policies from a new health care Exchange.

Under federal law, states can decide to require businesses with fewer than 100 employees to be in the exchange or a state can draw the line at companies with fewer than 50 employees.

Shumlin initially backed the larger number to include as many businesses as possible but he says he's now ready to support the lower number and he's willing to let the Exchange offer high deductible, lower premium policies. Why the change? The governor says this fight with the business community wasn't worth it.

(Shumlin) "We're spending an awful lot of energy on something that isn't going to solve all of Vermont's problems and our energy would be better spent in other ways."

(Kinzel) Shumlin says the fight that he is willing to take on is the implementation of a single payer system in the next few years.

(Shumlin) "Vermont is trying to do something that frankly as of America should be trying to do which is to deliver a quality health care system, where health care is a right and not a privilege and where we use our health care dollars to make people healthy again not insurance company profits."

(Kinzel) Betsy Bishop is the president of the Vermont Chamber of Commerce. She says Shumlin's changes are good news for her 1,500 members.

(Bishop) "The practical impact is that by giving employers more choices similar to what they're used to that you will get them to utilize the exchange in a way that will help the state reform health care."

(Kinzel) Shumlin's plan means that a company with between 50 and 100 employees won't be able to be part of the Exchange until 2016. And the Exchange is where there are millions of dollars in federal tax credits and premium subsidies.  House Speaker Shap Smith says it was a tough choice to make.

(Smith) "This was a hard decision. This was a very hard decision because there are people who will not have the opportunity to get into that market and they'll have to wait two years and their employees will have to wait two years as well. So it wasn't an easy decision and there were differences of opinion on this one."

(Kinzel) Smith wants the House Health Care committee to take a final vote on the entire health care bill in the next two weeks.

For VPR News, I'm Bob Kinzel in Montpelier.