(Host) Health Care advocates say they’re concerned that a provision of the new federal health care law could jeopardize the financial stability of Vermont’s Catamount Health Care program.
The provision allows parents to keep their children on their family policy until the child turns 26.
VPR’s Bob Kinzel reports.
(Kinzel) According to the latest report, roughly 10,000 Vermonters are enrolled in Catamount Health Care – that’s the state program that provides premium subsidies for individuals who make less than $33,000 a year and couples with household incomes below $43,000.
The report also shows that people under 25 make up almost a quarter of the entire enrollment.
The new federal health care bill allows parents to keep a child on their policy until the child turns 26, usually at no additional cost.
Peter Sterling is a spokesperson for the Vermont Campaign for Health Care Security. He’s concerned that many young people currently enrolled in Catamount will now move over to their parents’ policies. He says that shift could significantly change the demographics of the Catamount pool:
(Sterling) "Ultimately for the state of Vermont it may end up costing us more because young and healthy people will be now getting care through their parents’ plans instead of enrolling in Catamount. And when the risk pool of Catamount is filled with people who are aging – who are more likely to need health care – it will make the costs go up."
(Kinzel) Sterling does a lot of outreach to encourage young people to sign up for Catamount. He says the biggest obstacle is the cost of the premium and he says the problem will grow worse if a sizeable number of young people leave the program.
(Sterling) "Without any doubt, we’re going to see another rate increase and it’s not something that I think Vermonters can really afford to pay. So I believe the state of Vermont is going to have to make a choice – either allow the rate premiums to go up for people, and therefore see more people go uninsured and drop the program, or kick in more money to increase the subsidy for Catamount Health."
(Kinzel) Christine Oliver is the Deputy Commissioner at the Department of Banking and Insurance. She says the state is looking at this situation because of its potential financial impact on the future of Catamount:
(Oliver) "To the extent that you have a young healthy population with the Catamount pool or any pool they help balance out the pool and keep the costs down."
(Kinzel) Oliver says there might be some positive financial impact if a number of young people leave Catamount because the state would be paying out less money in subsidized premiums.
For VPR News I’m Bob Kinzel in Montpelier.