Correction to Recent News Coverage
Recent media news has reported twice in the past week that Blue Cross and Blue Shield of Vermont is “on the brink of bankruptcy.” This is untrue and a misrepresentation of Blue Cross VT’s financial condition.
Berlin, VT – WCAX has reported twice in the past week that Blue Cross and Blue Shield of Vermont is “on the brink of bankruptcy.” This is untrue and a misrepresentation of Blue Cross VT’s financial condition.
Health insurers are required to maintain an adequate level of capital reserves to ensure that we can pay member claims under any circumstances. At the end of 2024, Blue Cross VT’s reserve level was at approximately half of the level required by the Vermont Department of Financial Regulation. Our organization borrowed $30 million to increase our reserves in the short term and has implemented a financial recovery plan to further increase our capital levels over time. While we currently have lower than optimal levels of capital reserves, we are not nearing bankruptcy.
It’s important to acknowledge that Blue Cross VT’s financial challenges developed over a prolonged period, fueled by high hospital prices, increased utilization, increased care intensity, and fully funded premiums that were insufficient to cover escalating claims. We’re confident in our disciplined financial management and actions to stabilize our organization, but recovery will take time.
We are dedicated to supporting Vermonter’s health care needs through our comprehensive coverage and commitment to personal service. We continue working closely with regulators, legislators, government and health care partners across the state to advance meaningful change in our health care system – bringing affordable, quality care to our members.
We have transparently shared information about our financials in order to educate our members and the public about the fiscal pressures not only for our organization, but for families, employers and the entire health care system. We are accountable to our members, regulators and the public and are stewards of the premiums entrusted with us to responsibly manage our limited health care resources. Vermont cannot delay the implementation of health care reforms to address the access, quality and affordability of health care in our state.
