Week 2 of the Legislative Session

We are two weeks into the session and the building is buzzing with a lot of new people.  I'm sure you've heard that close to 50% of the members of the House have been representatives less than 2 years.  That means week 2, for most committees, has been one of review.  I'm happy to announce that I am again serving on the Health Care Committee.  This year with the additional responsibility of Ranking Member.  Although there is no formal job description, it means I will assist the Chair and Vice Chair with the planning and direction of the committee, chair the meeting if both are absent, and be unofficial mentor to new members.  The Health Care Committee has 5 new members so our 2nd week included Health Care 101, the History of Health Care Reform in Vermont, Green Mountain Care Board overview and Agency of Human Services Overview.  New to all members this week was the results review of the Vermont Household Health Insurance Survey.  This survey is conducted via phone every few years (maybe you were included) and provides data that is valuable when drafting health care policy.  We also had a presentation from Professor Jessica Holmes, Ph.D, Economics Professor, Middlebury College on Health Care Economics.  The health care sector is unique - meaning it doesn't have the same features common of most economic markets - and therefore doesn't follow the same economic theories of most markets.  This presentation highlighted those differences:

• Most transactions within markets involve only a buyer and seller. The health care market functions with many third party transactions, like insurers and the government (medicaid/medicare), playing a significant role in determining decisions.
• Sellers can freely enter and exit a marketplace.  Not the case with the health care market where doctor licensing, certificate of need laws and high fixed costs create barriers to entry.
• Buyers in traditional markets have full information about the quality of the product/service and the price they will pay.  However in the health care market patients often don't know what they need and cannot evaluate the quality of their treatment.  Often both the provider and the patient lack full information on price.
• In most markets buyers pay sellers directly for the goods/services being exchanged.  Not the case in the health care market where providers (doctors) are often paid by third parties (insurance companies) after the transaction has occurred.
• Free market prices coordinate the decisions of market participants and lead to efficient outcomes.  Again not true in the health care market where the access and payment rules established by insurance companies and government payers largely determine the allocation of resources, and the resulting allocation may not be the most efficient.

This presentation, and all presentations from the week, can be found on our committee page website: legislature.vermont.gov/committee/detail/2020/15    

​I will keep you posted with weekly blog updates, but please reach out anytime with questions or if I can be of assistance.  802-373-0599.

​Thank you for your continued support!