Amid proposed health insurance rate hikes, Vermont businesses say health costs are slowing growth

Vermont Public

As Vermont health insurers are proposing hefty 2025 rate hikes for individual and small group plan premiums, members of the business community say that high health care costs are slowing down the local economy.

Local business owners and employers shared their experiences Friday at a roundtable discussion hosted by Sen. Peter Welch at the Vermont Center for Emerging Technologies (VCET) in Burlington.

Gwen Pokalo Hart with the nonprofit Vermont Women’s Business Center told Welch that health care costs are the No. 1 reason that women are not growing their businesses.

“When they do get sick, not only do we not have a good leave system and things like that … but so often the prescription drugs aren't covered that they need to get well, aren’t covered by the baseline plan that they're on,” Pokalo Hart said. “And we see people closing their business having intensive medical debt.” Health care cost is also a challenge for retaining staff. Of the 600 women entrepreneurs the Vermont Women’s Business Center serves each year, she said most employ 10 or fewer people.

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