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Blue Cross VT CEO: Progress has been made, but health care costs ‘simply unsustainable’

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Blue Cross VT CEO: Progress has been made, but health care costs ‘simply unsustainable’


Blue Cross Blue Shield of Vermont CEO Don George has been ringing the alarm on the finances of the state’s largest health insurance provider since last July, when he sent an open letter via email describing Blue Cross VT’s “fragile financial situation.”

George said the insurer was being battered by escalating prices for hospital services and extraordinary markups in prescription medications, depleting its member reserves, driving up premiums and making health insurance all but unaffordable.

He said Blue Cross VT found itself in the “unprecedented position” of being forced to file an amended request to the Green Mountain Care Board for an additional 4% increase in contributions to its reserve fund, which comes from premiums paid by policy holders. The reserve fund is used to cover unexpected levels of claims, which Blue Cross VT was experiencing.

This week, George sent another open letter via email, thanking “stakeholders across Vermont” for the overwhelming response to his raising the alarm.

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“We want to express our appreciation to our regulators, legislators, government and health care partners across the state for their willingness to advance difficult but meaningful changes for our health system,” George wrote.

Blue Cross VT would like to see revenue caps on hospital expenses

George outlined the steps that have been taken to stabilize Blue Cross VT and avert a crisis:

  • Establishing, in coordination with the Vermont Department of Financial Regulation (DFR), a comprehensive capital recovery plan to ensure our long-term stability.
  • Expanding the value of our Blue Cross Blue Shield of Michigan affiliation, a key enabler of our mission to make health care work better for all Vermonters.
  • Reducing our financial risk in Vermont Blue Advantage, our Medicare Advantage plan.
  • Limiting our already lean administrative expenses.
  • Actively supporting legislation to protect our members and safeguard our position within the marketplace.
  • Continuing to offer the highest quality health plans and customer service to our members.
  • Proposing and supporting systemic changes in our healthcare system, including urging the Green Mountain Care Board to implement hospital/payer-specific revenue caps − an important step toward affordability.

High prices, sicker patients, more patients all lead to financial crisis for Blue Cross VT

Blue Cross VT’s financial challenges were a long time coming, according to George, who said high hospital prices, increased utilization, sicker patients and premiums insufficient to cover escalating claims, all spelled trouble.

“Additionally, we’ve seen an increase in members with complex care needs and catastrophic conditions,” George continued. “In 2024, 15% of our members met these criteria and accounted for 54% of total claims cost. We’re incredibly proud to support Vermonters who are most in need of care. The high costs of these claims, however, requires a significant and steady draw on our finances.”

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In 2024, George said that Blue Cross VT’s member reserves fell to $58.4 million, with the inclusion of a $30 million loan, “triggering regulatory solvency oversight by the DFR.” As a result, the portion of member premiums placed into the reserve fund rose to 7%.

“The DFR will determine when we can return to normal funding levels,” George said.

We’ve made some progress, but health care costs remain alarmingly high

While there were some “positive developments” in the first quarter of 2025, George said the cost of care remains “alarmingly high.”

“We currently pay $35 million per week in claims for our members, an amount fueled by hospital and drug costs that show no sign of slowing,” he said. “The cost of healthcare is putting tremendous pressure on Vermonters − our people, our businesses and organizations that fund benefits, and our economy. It’s simply unsustainable.”

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George called out a recent settlement between the UVM Health Network and the Green Mountain Care Board as a “chance to reset,” but not a solution to the rising trajectory of health care spending.

“The $12 million promised to Blue Cross VT to resolve 2022 and 2023 overcharges is an important step, however, these funds are not nearly enough to offset our $62.1 million loss in 2024 or the cumulative millions over the past three years,” George said. “More deliberate, long-term actions are required to limit pricing, curb unnecessary utilization and ensure long-term stability of our organization and our health system.”

Contact Dan D’Ambrosio at 660-1841 or ddambrosio@gannett.com. Follow him on Twitter @DanDambrosioVT.



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WCAX Investigates: Police participation in border program draws scrutiny

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WCAX Investigates: Police participation in border program draws scrutiny


BURLINGTON, Vt. (WCAX) – Vermont police officers are working overtime shifts along the Canadian border under a federal program that critics say could violate the state’s anti-bias policing laws.

“Up here, we’re so small we rely on our partner agencies,” said Swanton Village Police Chief Matthew Sullivan.

On a recent frosty Friday, Sullivan was patrolling along the Canadian border as part of Homeland Security’s Operation Stonegarden. The chief and other local officers work overtime shifts for the U.S. Border Patrol.

“It acts as a force multiplier because we’re able to put more officers out in these rural areas in Vermont,” Sullivan said.

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During an exclusive ride-along, Sullivan showed us a field where, as recently as last fall, migrants were smuggled across the border. “These people are really being taken advantage of,” he said.

From 2022 to 2023, U.S. Border Patrol encountered just shy of 7,000 people entering the country illegally in the region, more than the previous 11 years combined.

In several instances, police say cars have tried to crash through a gate in Swanton along the border. Others enter from Canada on foot and get picked up by cars with out-of-state plates.

The chief says the illegal crossings strike fear among local parents. “They didn’t feel safe allowing their kids outside to play, which is extremely unfortunate,” Sullivan said.

Through Operation Stonegarden — which was created in the wake of 9/11 — Sullivan and his officers get overtime pay from the feds. “We’re kind of another set of eyes and ears for border patrol,” Sullivan said. His department also gets equipment and training.

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Six agencies in Vermont participate in Stonegarden: The Vermont State Police, Chittenden County Sheriff’s Department, Essex County Sheriff’s Department, Orleans County Sheriff’s Department, Newport City Police Department, and the Swanton Village Police Department. Some three dozen across New England participate in Stonegarden. These agencies collect relatively small amounts from the feds — $760,000 in Vermont, $190,000 in New Hampshire, and $1 million in Maine.

But amid the Trump administration’s immigration crackdown, Stonegarden is under scrutiny.

“This has become quite relevant to a lot of people once again,” said Paul Heintz, a longtime Vermont journalist who now writes for the Boston Globe. “These three states have dramatically different policies when it comes to local law enforcement working with federal law enforcement.”

Vermont has some of the strictest rules about police assisting federal immigration officials. The Fair and Impartial Policing Policy limits cooperation with the feds and says immigration status, language, and proximity to the border cannot be the basis of an investigation.

“Vermonters have made clear through their elected representatives that they want state and local law enforcement to be focusing on state and local issues,” said Lia Ernst with the ACLU of Vermont. She says Stonegarden is crossing the line. “They don’t want their police to be a cog in the mass deportation machinery of any administration but particularly the Trump administration,” Ernst said.

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The ACLU and other critics are concerned that Stonegarden creates a cozy relationship between local police and immigration officials that can be used to enforce the president’s immigration crackdown.

Heintz says the distinction between civil and criminal immigration enforcement can be fluid. In most civil cases in which the feds seek to deport, Vermont law enforcement can’t play a role because it’s against the law. In criminal cases, which local police can enforce, immigrants can be detained and charged.

“An operation may start out appearing to focus on a federal criminal immigration issue and may turn into a civil one over the course of that investigation,” Heintz said.

“There is a lot of nuance to it,” admitted Sullivan. He insists his department is not the long arm of federal law enforcement and is instead focused on crime, including guns, drugs, and human trafficking. However, if someone is caught in the act of crossing the border illegally, that constitutes a crime, and the chief said he calls for federal backup. Though he said that rarely happens.

“It’s a criminal violation to cross the border outside of a port of entry, and technically, we could take action on that. But again, we’re not here to enforce civil immigration while working Stonegarden,” Sullivan said.

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Vermont Catholic Church receives bankruptcy court’s OK to sell Rutland property – VTDigger

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Vermont Catholic Church receives bankruptcy court’s OK to sell Rutland property – VTDigger


Rutland’s former Loretto Home senior living facility, as pictured in recent advertisements offering it for sale. Pomerleau Real Estate photo

Vermont’s Roman Catholic Diocese, now seeking to reorganize its depleting finances in U.S. Bankruptcy Court, has received permission to sell its former Loretto Home senior living facility in Rutland.

In a ruling this week, Judge Heather Cooper said she’d allow the state’s largest religious denomination to accept a $1 million offer from Rutland’s nonprofit Cornerstone Housing Partners, which wants to transform the Meadow Street building into transitional and long-term affordable apartments.

“The proposed sale represents the highest and best offer for the property,” church lawyers argued in court papers, “and the proceeds of the sale will assist the diocese in funding the administration of this bankruptcy case and ultimately paying creditors.”

Cornerstone said it had a $3.9 million commitment from the state Agency of Human Services to help it buy and rehabilitate the 20,000-square-foot facility.

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The nonprofit could immediately launch its first-phase plan for 16 units of emergency family housing under a new state law that expands locations for shelters. But the $1 million sale is contingent on receiving a Rutland zoning permit for a second-phase plan for at least 20 long-term apartments.

“We’re not going to purchase the building if we can’t create affordable apartments there,” Mary Cohen, the nonprofit’s chief executive officer, told VTDigger. “The goal is to create permanent housing.”

Cornerstone already has heard questions from neighbors as it seeks a zoning permit from Rutland’s Development Review Board.

“I think it’s a lack of understanding,” Cohen said. “We’re good landlords. We house people and take good care of our property. The application process will allow a public conversation about what our plans are.”

The Vermont Catholic Church filed for Chapter 11 protection a year ago after a series of clergy misconduct settlements reduced its assets by half, to about $35 million. Since then, 119 people have submitted new child sexual abuse allegations — almost double that of an earlier 67 accusers who previously settled cases over the past two decades.

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To raise money, the diocese enlisted Pomerleau Real Estate to market the Loretto Home after the facility closed in 2023. The property, under the control of the church since 1904, was initially listed at $2.25 million before being reduced to $1.95 million and, by this year, $1.3 million, court records show. The diocese received an unspecified number of offers before accepting Cornerstone’s $1 million bid this summer.

Under the Chapter 11 process, the Vermont church must receive court approval for all major purchases and sales until a judge decides on its call for a reorganization plan.





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Vermont soccer’s Rob Dow reportedly eyeing move to Big Ten program

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Vermont soccer’s Rob Dow reportedly eyeing move to Big Ten program


Vermont soccer head coach Rob Dow appears to be headed to a bigger conference.

The longtime Catamounts head coach who guided Vermont to the 2024 NCAA championship in historic fashion is reportedly set to be hired by Penn State, according to Jon Sauber of Centre Daily Times. Shortly before Sauber’s online report on Wednesday, Dec. 11, WCAX-TV’s Jack Fitzsimmons and Michael Dugan broke news that Dow and the Nittany Lions were in “deep negotiations.”

UVM athletics officials declined to comment until there is an official announcement. 

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Dow’s ninth season at Vermont ended with an upset loss to Hofstra in the second round of the NCAA Tournament at Virtue Field. The Catamounts had entered this year’s tournament unbeaten and as the top overall seed. They also started 2025 as the top-ranked team in the nation in the United Soccer Coaches preseason poll.

Under Dow, the Catamounts have advanced to the NCAA Tournament in five straight seasons (2021-2025). They reached the NCAA quarterfinals in 2022, the third round in 2023 and then last year’s unseeded run to capture their first national championship with an overtime victory over Marshall at the College Cup in Cary, North Carolina.

Through his nine seasons at Vermont, Dow has gone 109-41-21 with four America East tournament crowns and three conference regular-season titles. His 11 NCAA Tournament wins are a program record. He stands five wins shy of matching Cormier and Ron McEachen for most victories in program history.

Dow spent five seasons as an assistant coach at Vermont before earning a promotion to head coach in 2017 following the departure of Jesse Cormier.

According to UVM’s salary records online, Dow’s current base salary is $200,000. In 2017, in his first year at the helm, it was $80,000.

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If hired, Dow would be taking over at Penn State following Jeff Cook’s exit. Cook stepped down in November after an eight-year run and three NCAA Tournament appearances. The Nittany Lions went 5-8-4 this past season.

Penn State’s operating budget for the 2024 fiscal year for men’s soccer was 10th in the country at $2,099,653, according to data collected by Matt Brown of Extra Points. Vermont was slotted 28th in Brown’s story.

Rob Dow: Season-by-season record with Vermont soccer

2025: 14-1-5 (NCAA second round)

2024: 16-2-6 (national champions)

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2023: 13-6-2 (NCAA third round)

2022: 16-4-2 (NCAA quarterfinals)

2021: 13-5-2 (NCAA first round)

2020-21: 5-2-1 (America East final)

2019: 11-6-1 (America East semifinals)

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2018: 11-7-1 (America East quarterfinals)

2017: 10-8-1 (America East semifinals)

Total: 109-41-21

Contact Alex Abrami at aabrami@freepressmedia.com. Follow him on X, formerly known as Twitter: @aabrami5.





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