Vermont’s Strict Control of the Health Insurance Marketplace Restricts Choice and Drives Up Costs
Vermont residents face a highly consolidated individual health insurance marketplace, with only two carriers offering plans for 2023—MVP Health Care and Blue Cross Blue Shield of Vermont. This duopoly limits consumer choice and alternative coverage options within the state. Further analysis shows Vermont’s strict control over marketplace participation correlates clearly with premium rates being substantially higher than larger states and even similarly-sized populations. By modifying key regulations and taking gradual steps to allow increased health insurance competition, Vermont policymakers could exert downward pressure on pricing to benefit everyday residents and small businesses. Evaluating Vermont’s Limited Carrier Landscape According to the Vermont Department of Financial Regulation’s 2023 QHP issuer participation report, MVP Health Care and Blue Cross Blue Shield Vermont control 86% and 14% market share respectively . No other carriers offe...