1 | 1 | | BILL AS INTRODUCED S.1 |
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2 | 2 | | 2025 Page 1 of 5 |
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4 | 4 | | |
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5 | 5 | | VT LEG #378801 v.1 |
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6 | 6 | | S.1 1 |
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7 | 7 | | Introduced by Senators Vyhovsky, Gulick, Watson and White 2 |
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8 | 8 | | Referred to Committee on 3 |
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9 | 9 | | Date: 4 |
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10 | 10 | | Subject: Health; Medicaid; eligibility 5 |
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11 | 11 | | Statement of purpose of bill as introduced: This bill proposes to provide 6 |
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12 | 12 | | Medicaid-equivalent coverage to all Vermonters by age bands over time, 7 |
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13 | 13 | | regardless of household income. It would direct the Agency of Human 8 |
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14 | 14 | | Services to seek approval for federal financial participation in the expanded 9 |
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15 | 15 | | coverage, with the State paying the full amount if the federal government does 10 |
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16 | 16 | | not approve the request. The bill would direct the Agency of Human Services 11 |
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17 | 17 | | and others to develop cost estimates for the Medicaid-equivalent coverage and 12 |
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18 | 18 | | a detailed implementation plan. The bill would also require the Department of 13 |
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19 | 19 | | Taxes to report on potential payroll tax design options to support the State’s 14 |
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20 | 20 | | financial obligation in providing the Medicaid-equivalent coverage, both with 15 |
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21 | 21 | | and without the federal funding. 16 |
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22 | 22 | | An act relating to providing Medicaid-equivalent coverage to all 17 |
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23 | 23 | | Vermonters 18 BILL AS INTRODUCED S.1 |
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24 | 24 | | 2025 Page 2 of 5 |
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26 | 26 | | |
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27 | 27 | | VT LEG #378801 v.1 |
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28 | 28 | | It is hereby enacted by the General Assembly of the State of Vermont: 1 |
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29 | 29 | | Sec. 1. 33 V.S.A. chapter 18, subchapter 3 is added to read: 2 |
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30 | 30 | | Subchapter 3. Medicaid-Equivalent Coverage 3 |
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31 | 31 | | § 1851. MEDICAID-EQUIVALENT COVERAGE FOR ALL VERMONT 4 |
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32 | 32 | | RESIDENTS 5 |
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33 | 33 | | The Agency of Human Services shall provide hospital, medical, dental, and 6 |
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34 | 34 | | prescription drug coverage equivalent to coverage in the Vermont Medicaid 7 |
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35 | 35 | | state plan to all Vermont residents, regardless of their household income, as 8 |
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36 | 36 | | follows: 9 |
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37 | 37 | | (1) to individuals up to 26 years of age, for coverage beginning in 2029; 10 |
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38 | 38 | | (2) to individuals who are not less than 55 years of age and not more 11 |
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39 | 39 | | than the age of eligibility for the federal Medicare program, for coverage 12 |
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40 | 40 | | beginning in 2030; 13 |
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41 | 41 | | (3) to individuals who are not less than 45 years of age and not more 14 |
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42 | 42 | | than 54 years of age, for coverage beginning in 2031; 15 |
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43 | 43 | | (4) to individuals who are not less than 35 years of age and not more 16 |
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44 | 44 | | than 44 years of age, for coverage beginning in 2032; and 17 |
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45 | 45 | | (5) to individuals who are not less than 26 years of age and not more 18 |
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46 | 46 | | than 34 years of age, for coverage beginning in 2033, at which time all 19 |
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47 | 47 | | Vermont residents shall be eligible for coverage. 20 BILL AS INTRODUCED S.1 |
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48 | 48 | | 2025 Page 3 of 5 |
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50 | 50 | | |
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51 | 51 | | VT LEG #378801 v.1 |
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52 | 52 | | Sec. 2. GLOBAL COMMITMENT WAIVER AMENDMENT 1 |
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53 | 53 | | (a) On or before September 1, 2025, the Secretary of Human Services shall 2 |
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54 | 54 | | request approval from the Centers for Medicare and Medicaid Services to 3 |
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55 | 55 | | amend Vermont’s Global Commitment to Health Section 1115 Demonstration 4 |
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56 | 56 | | Waiver to make all Vermont residents eligible for hospital, medical, dental, 5 |
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57 | 57 | | and prescription drug coverage equivalent to coverage in the Vermont 6 |
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58 | 58 | | Medicaid state plan, regardless of income, as set forth in 33 V.S.A. § 1851. 7 |
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59 | 59 | | (b) In the event that the Centers for Medicare and Medicaid Services does 8 |
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60 | 60 | | not approve Vermont’s request for federal financial participation in providing 9 |
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61 | 61 | | Medicaid-equivalent coverage to all Vermonters, regardless of income, the 10 |
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62 | 62 | | coverage shall be funded with State-only dollars. 11 |
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63 | 63 | | Sec. 3. AGENCY OF HUMAN SERVICES; COST ESTIMATES; 12 |
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64 | 64 | | IMPLEMENTATION PLAN; REPORT 13 |
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65 | 65 | | (a) The Agency of Human Services, in consultation with the Green 14 |
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66 | 66 | | Mountain Care Board and the Department of Financial Regulation, shall: 15 |
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67 | 67 | | (1) estimate the costs of providing hospital, medical, dental, and 16 |
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68 | 68 | | prescription drug coverage equivalent to coverage in the Vermont Medicaid 17 |
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69 | 69 | | state plan to all Vermont residents as set forth in 33 V.S.A. § 1851, including 18 |
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70 | 70 | | the amount of State funds that would be required to support the program 19 |
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71 | 71 | | through full implementation in 2033 both with and without federal Medicaid 20 |
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72 | 72 | | dollars; 21 BILL AS INTRODUCED S.1 |
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73 | 73 | | 2025 Page 4 of 5 |
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75 | 75 | | |
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76 | 76 | | VT LEG #378801 v.1 |
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77 | 77 | | (2) estimate the potential cost offsets in the health care system and 1 |
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78 | 78 | | elsewhere in the economy as a result of all Vermont residents having access to 2 |
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79 | 79 | | Medicaid-equivalent coverage; and 3 |
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80 | 80 | | (3) develop and propose a detailed implementation plan for providing 4 |
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81 | 81 | | Medicaid-equivalent coverage to all Vermont residents, beginning with 5 |
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82 | 82 | | individuals up to 26 years of age in 2029 and continuing through full 6 |
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83 | 83 | | implementation in 2033. 7 |
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84 | 84 | | (b) On or before January 15, 2026, the Agency of Human Services shall 8 |
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85 | 85 | | provide its cost and cost-offset estimates and implementation plan to the House 9 |
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86 | 86 | | Committees on Health Care, on Appropriations, and on Ways and Means and 10 |
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87 | 87 | | the Senate Committees on Health and Welfare, on Appropriations, and on 11 |
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88 | 88 | | Finance. 12 |
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89 | 89 | | Sec. 4. DEPARTMENT OF TAXES; PAYROLL TAX OPTIONS; REPORT 13 |
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90 | 90 | | On or before January 15, 2027, the Department of Taxes, in consultation 14 |
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91 | 91 | | with the Agency of Human Services, shall provide to the House Committees 15 |
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92 | 92 | | on Health Care and on Ways and Means and the Senate Committees on Health 16 |
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93 | 93 | | and Welfare and on Finance options for structuring a payroll tax to generate 17 |
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94 | 94 | | the revenue necessary to support the State portion of the Medicaid and CHIP 18 |
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95 | 95 | | expansion established in Sec. 1 of this act, both with and without federal 19 |
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96 | 96 | | Medicaid dollars, based on the Agency’s cost estimates developed pursuant to 20 |
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97 | 97 | | Sec. 3 of this act and any subsequent additional fiscal analysis. The 21 BILL AS INTRODUCED S.1 |
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98 | 98 | | 2025 Page 5 of 5 |
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100 | 100 | | |
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101 | 101 | | VT LEG #378801 v.1 |
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102 | 102 | | Department’s report shall set forth at least three payroll tax options and shall 1 |
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103 | 103 | | include the Department’s recommendation for which option is the most 2 |
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104 | 104 | | administratively feasible for employers, employees, and the State. 3 |
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105 | 105 | | Sec. 5. EFFECTIVE DATES 4 |
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106 | 106 | | (a) Sec. 1 (33 V.S.A. § 1851; Medicaid-equivalent coverage for all 5 |
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107 | 107 | | Vermont residents) shall take effect on January 1, 2029. 6 |
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108 | 108 | | (b) The remainder of this act shall take effect on passage. 7 |
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