How Rising Health Insurance Premiums Are Impacting Property Taxes Across the State

BURLINGTON, Vt. – Essex is facing a 6% increase in its preliminary budget for 2026, while Newport is looking at an 8.9% rise, and Morristown is at 4.4%.

The rise in Morristown’s budget partly stems from a staggering 32% hike in health insurance costs. Ted Brady from the Vermont League of Cities and Towns noted that these budget pressures reflect the financial struggles Vermonters experience at home and in their businesses. He highlighted the overwhelming impact of rising health insurance costs.

The Green Mountain Care Board approved significant increases in health insurance premiums for 2025. As a result, town budgets and property taxes are adjusting to these changes. Owen Foster, the board chair, emphasized the necessity of these adjustments, stating that rejecting the increases could lead to severe consequences for Vermont’s service providers.

“Many Vermont providers operate on thin margins. If they don’t receive payments for claims, they can’t meet their payroll or rent obligations,” Foster explained.

Blue Cross Blue Shield, the largest health insurer in Vermont, mentioned that being a non-profit means they must adapt to rising care costs to remain solvent. Sara Teachout from Blue Cross Blue Shield pointed out that most premiums reflect the costs of medical and pharmaceutical care. When those costs rise, premiums inevitably follow.

Municipal employees used to have the option to negotiate their insurance through a statewide pool. However, changes brought by the Affordable Care Act now require them to participate in the state’s insurance exchange.

As for solutions to reduce health insurance premiums, both Blue Cross Blue Shield and the Green Mountain Care Board stress the importance of controlling procedural prices. They also suggest that individuals should seek primary care for minor issues instead of relying on hospital emergency departments, which can be costlier.

Discussions surrounding the town budgets are ongoing, with voting scheduled for Town Meeting Day on March 4th.

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