In this update:
Healthcare changes • Education reform • Climate plan • Clean Heat pause • New recovery tools

Friends and neighbors,

Our family is grateful to have just welcomed our daughter home from overseas military service. Thank you to those who reached out with kind words and concern during her deployment, it meant a great deal to us.

I’ll be holding office hours on Thursday, July 17th and Thursday August 21st from 6–7 PM at the Wardsboro Public Library – please come by if you’d like to connect or share a concern. As a reminder, I will not be holding office hours in Dover on Saturday, August 2nd.

What’s Changing in Healthcare—and What We Still Don’t Know

Vermonters face a lot of uncertainty about healthcare right now. The passage of H.R. 2 and the Omnibus Budget Reconciliation Bill (OBBB) at the federal level will likely have far-reaching effects on how care is delivered, paid for, and accessed here in Vermont. But the full impact is still unclear.

Here’s the official text of H.R. 2, the “One Big Beautiful Bill Act” passed by Congress and signed into law in: H.R. 2 – Budget Reconciliation Bill (full text PDF)

This bill includes changes to key federal healthcare provisions like Medicaid restructuring, Medicare payment limits, new eligibility rules, and more.

Vermont’s legislative analysts and the Governor’s team are working to understand what these federal changes mean for our state. The Joint Fiscal Committee and Emergency Board will meet on July 31 to hear testimony from federal staff and experts. We need this analysis to prepare for possible major changes to coverage, costs, and access.

What’s clear is that Vermont’s healthcare system depends heavily on federal funding. With an aging population and a risk pool that challenges insurers, cuts won’t just affect individuals, they’ll also stress hospitals and drive up insurance rates.

What We Know So Far:

• New Medicaid and CHIP Rules
  H.R. 2 adds documentation requirements and more frequent eligibility checks for Medicaid, CHIP, and Medicare Savings Programs. These may cause unintended coverage losses, especially for those facing paperwork or language challenges.
• Medicare Reimbursement Caps
  H.R. 2 limits Medicare payment growth to 10% of inflation after 2027. Rural hospitals (like Grace Cottage and Brattleboro Memorial) may struggle to keep providers and stay financially stable if this remains unchanged in the future.
• Refugee Medicaid Eligibility Cuts
  The OBBB removes many adult refugees, including lawful permanent residents and workers, from Medicaid eligibility. This affects over 300 people in Southern Vermont alone. Federal rules now attempt to penalize states for using state dollars to fill this gap.
• Upcoming Rate Hikes for 2026
  Vermonters buying insurance through Vermont Health Connect or small employers may see large premium increases starting in January.

Blue Cross Blue Shield has requested a 23.3% increase for individuals and 13.7% for small businesses. MVP requests 6.2% and 7.5%, respectively. These increases are tied to prescription drug costs, hospital pricing, and ongoing federal uncertainty. You can weigh in on these premium increases with the Green Mountain Care Board:

Key Dates for the Green Mountain Care Board:
July 21 & 23: Insurance Rate Review Hearings (via MS Teams, 8 a.m.)
July 24: Public Comment Forum (4 p.m. via MS Teams)
August 11: GMCB Rate Decisions Announced

Submit a comment by July 28 → bit.ly/2026RateComment
Email: GMCB.Board@Vermont.gov | Call: (802) 828-2177
Call the Health Care Advocate for help with access or coverage: 1-800-917-7787

What Vermont Is Doing – so far – to Respond to Healthcare Access and Cost Uncertainty

This year, we passed new laws to try to address affordability, oversight, and to give more stability in the healthcare system:

• Act 2: Prevents a 7% insurance rate hike by keeping small group and individual markets separate.
• Act 68: Starts long-term reforms like reference-based pricing, hospital spending reductions, and global hospital budgets.
• Act 49: Gives the state emergency tools to stabilize insurers or intervene in financially troubled hospitals.
• Act 55: Caps outpatient drug markups—potentially lowering premiums but raising rural hospital funding concerns.
• Act 21: Erases up to $100 million in medical debt through a state-nonprofit partnership.
• Act 14: Adjusts Medicaid rates to better support community-based care providers.
• Act 15: Updates the Certificate of Need process to reflect real costs and modern needs.

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2025 AARP Vermont Legislative Session Report

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Education Reform & Task Force Appointed

Governor Scott signed H.454 (Act 73), the education governance bill. The Task Force on School District Redistricting has been appointed and will meet by August 1. This group will study how to responsibly and equitably modernize district boundaries.

H.454 (Act 73) School District Redistricting Task Force Members

• Chris Locarno – Barre (Appointed by Senate Committee on Committees; former finance director, Central Vermont SU)
• David Wolk – Rutland (Appointed by the Governor; former Castleton University President and Rutland City Superintendent)
• Rep. Edye Graning (D) – Jericho (Appointed by the Speaker; represents Chittenden-3)
• Rep. Rebecca Holcombe (D) – Norwich (Appointed by the Speaker; represents Windsor-Orange-2)
• Rep. Beth Quimby (R) – Lyndonville (Appointed by the Speaker; represents Caledonia-2)
• Dr. Jay Badams – Norwich (also works in Hanover, NH) (Appointed by the Speaker; superintendent of the Dresden School District)
• Kim Gleason – Essex/Westford (Appointed by the Speaker; former school board member and State Board of Education member)
• Sen. Martine Gulick (D) – Burlington (Appointed by Senate Committee on Committees; represents Chittenden Central)
• Sen. Scott Beck (R) – St. Johnsbury (Appointed by Senate Committee on Committees; represents Caledonia)
• Sen. Wendy Harrison (D) – Brattleboro (Appointed by Senate Committee on Committees; represents Windham)
• Dr. Jennifer Botzojorns – St. Johnsbury (Appointed by Senate Committee on Committees; former superintendent, Kingdom East SD)

VTDigger: What’s Next for H.454 (Act 73): Education Governance Reform

2025/26 Timeline:

• By August 1: Task Force meets and begins evaluating statewide district configurations and drafting proposed new maps.
• Fall–Winter 2025: Task Force develops redistricting criteria and draft legislation. Public engagement expected but not required.
• Jan–Mar 2026: Task Force presents proposals. Committees review and hold hearings. Expect debate and amendments.
• Spring 2026: Full House and Senate vote on the recommendations. Without approval, the law’s reforms won’t move forward. If approved: Implementation planning and technical assistance for districts in 2026–27.

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Climate Action and the New State Plan

On July 1, the Vermont Climate Council released the 2025 Vermont Climate Action Plan. It reflects nearly a year of work and contribution from over 1,000 Vermonters. The plan outlines ten priorities—from resilient infrastructure to smarter land use. I’m watching closely for implementation of strategies that help Vermonters – particularly rural and poor Vermonters – save money. Read the plan → 2025 Climate Action Plan

The Clean Heat Standard Is Not Dead. It Is Dormant.

As a recent VTDigger article explains, the Legislature did not repeal the Affordable Heat Act. The Public Utility Commission completed its work, and the advisory groups fulfilled their responsibilities. Despite continued support in the Legislature, the governor’s opposition, and the lack of a veto-proof margin, has paused the Clean Heat Standard.

This pause carries real consequences.

Without the Clean Heat Standard in place, Vermont’s second-largest source of greenhouse gas emissions, heating fuels, remains unregulated in a marketplace that is consolidating. Many Vermonters who can afford to are already switching away from oil and propane to protect themselves from volatile fuel prices. Those with fewer resources are being left behind in a shrinking and increasingly volatile fossil fuel market.

This pause postpones support for those most in need during this transition. The shift to cleaner, more stable energy sources is happening regardless of what the Governor and Legislature do, but without coordinated policy, the path ahead is more costly and less fair.

We cannot ignore the economic and environmental challenges facing our communities. The longer we delay systemic action, the harder and more disruptive the transition will be, especially for households already under strain.

I will continue working toward policies that support affordability, climate resilience, and fairness. Every Vermonter should have the opportunity to join in the transition away from fossil fuels.

New State Disaster Recovery Website

A new state disaster recovery website has launched as a central hub for future and ongoing events. It includes resources for business support, funding, and updates.
Explore the site and access business recovery tools here

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Vermont Public: What passed in Vermont’s 2025 legislative session

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As We Head Into Late Summer

Thanks for taking the time to read through this update. There’s a lot in motion right now, especially in healthcare and education and I’ll continue doing my best to share what’s real, what’s at risk, and what we can do together.

I’ve been hearing from folks about rising insurance premiums, questions about school governance, and concerns about how federal decisions could impact Vermont households and communities. If you’re navigating any of these issues, or something else, please don’t hesitate to reach out. I may not have all the answers, but I’ll do what I can to help, or to connect you with someone who can.

I hope you’re also finding ways to enjoy the season—whether it’s time outside, a project you care about, or just a few quiet minutes to step back and breathe. We’ve needed that in our family, and I know many of you have too.

You can always reach me at (802) 384-0233 or lsibilia@leg.state.vt.us. I hold office hours at the Wardsboro Public Library on the 3rd Thursday of each month from 6–7 PM, at the Dover Free Library on the 1st Saturday from 11–Noon, and by request.

Laura

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