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BlueCross BlueShield of Vermont in financial crisis

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BlueCross BlueShield of Vermont in financial crisis


BlueCross BlueShield of Vermont − the largest health insurer in Vermont with a 66% market share − is threatened with insolvency because of its declining reserves, according to a state regulator.

Kevin Gaffney, commissioner of the Vermont Department of Financial Regulation, said Friday he’s confident BCBSVT will remain solvent, which is his department’s responsibility to ensure.

“As solvency regulator, our primary role is protecting the market,” Gaffney said. “We have to have a place for people to purchase insurance or we haven’t done a good job of protecting Vermont residents.”

Gaffney said Vermont’s largest health insurer is at a critical juncture.

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“BlueCross BlueShield of Vermont is a big tanker,” he said. “We have to start to turn it. We can do that and there are steps to do it.”

While Vermont has not had a major insurance company fail, according to Gaffney, he said the example of Florida offers a cautionary tale where losses from natural disasters have caused insolvencies in property insurance companies and have triggered other insurance companies to exit the market.

“We have sufficient rigor in our solvency process to avoid these things,” Gaffney said. “DFR is taking those actions in a timely and I think in an appropriate manner.”

Gaffney is requiring BCBSVT to file a plan with DFR by early September, showing how they’re going to “bolster their reserves and improve their solvency.” The key element of that plan, articulated in a “solvency letter” Gaffney sent to Owen Foster, chair of the Green Mountain Care Board, on July 12, is an additional 4% increase by BCBSVT in contributions to its reserve fund.

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The Green Mountain Care Board is an independent oversight board created by the Vermont Legislature to regulate major areas of the health care system in the state, including health insurance premiums. The Care Board would have to approve the increased contributions to BCBSVT’s reserve fund.

‘A Fragile Financial Situation’

Don George, president and chief executive officer of BCBSVT, sent an open letter via email on Monday, July 22, titled, “A Fragile Financial Situation.” In the letter, George said the insurer is in the “unprecedented position” of being forced to file an amended request to the Green Mountain Care Board for an additional 4% increase to 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 the insurer has experienced in the past few months.

“Since May, health care claims have increased dramatically, and our member reserve levels have declined precipitously,” George said. “This is in addition to underwriting losses in five of the last six years, leaving us without the means to weather this downturn with existing member reserves. The cumulative impact of underfunded premiums − despite our consistent advocacy for rates that fully fund the cost of our members’ health care − has created this fragile financial situation.”

Sara Teachout, director of government and media relations for BCBSVT, explained that underwriting losses occur when the company is unable to cover the total amount of member claims plus administrative costs. She said administrative costs for BCBSVT are “quite low,” when compared to its peers nationally, but the insurer is still making administrative cuts by not advertising and by restricting new hiring.

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“The only year we did not have a loss was 2020, the year of COVID, when people were not going to the hospital,” Teachout said.

BlueCross BlueShield VT asks for an additional $20 million for its reserve fund

The original request for contributions to the reserve fund, filed in May, asked for a 3% increase, which equates to $15 million. The amended request for a 7% increase equates to $35 million, or more than double the original request, according to Teachout.

“Blue Cross VT has advocated for adequate funding of member reserves consistently over time, while our requests were cut year over year,” George said in an email to the Burlington Free Press. “Now with member reserves dangerously depleted, we are forced to increase the rates substantially to cover the deficit.”

Owen Foster, chair of the Care Board, declined to comment for this story because the hearings for BCBSVT’s rate filings are ongoing.

Making sure BlueCross BlueShield VT remains solvent

Gaffney said the reserve fund is “critical” to maintaining BCBSVT’s solvency. He said the health of the reserve fund can be expressed as a percentage − called a risk-based capital ratio range − reached through complex calculations that reflect BCBSVT’s investment risk, but basically the percentage equates to an amount of money that accounts for “volatility.”

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“The (DFR) did an order back in 2019 for Blue Cross Blue Shield of Vermont to maintain a risk-based capital ratio range between 590% and 745%,” Gaffney said. “If you can stay in that range you can withstand volatility and not be at risk (of insolvency).”

At the end of 2023, BCBSVT’s risk-based capital ratio range was 337%, far below the required range. Gaffney said in six of the last 10 years, the insurer’s contribution to its reserve “was a negative because of other adjustments to rate filings.” Rates are regulated by the Green Mountain Care Board.

“It is as dire as it sounds,” Gaffney said.

Reserve fund continues to drop this year

BCBSVT’s reserve fund balance has declined by $47 million over the past two years, not including this year’s results, according to Gaffney. The insurer had about $88 million in reserves at the end of 2023, and that number has continued to decline through 2024. Teachout was unable to provide the current balance of the reserve fund.

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“We do know the 2023 number was only adequate to cover just under two months of our members’ claims, which is extremely low,” Teachout said. “We should roughly double where we are. Our balance should have been close to $180 million at the end of 2023.”

‘We have to have a place for people to purchase insurance’

The overall context for the discussion of BCBSVT’s solvency is a crisis of health care affordability for Vermonters, both in terms of hospital costs and premiums. Gaffney said he’s not unsympathetic to the affordability issue, but that he has a larger responsibility as commissioner of DFR, and BCBSVT’s solvency regulator.

Gaffney said he also understands that “often it’s felt that these increases are to just bolster profits for insurance companies.”

“That’s not the case now,” he said. “It’s going to take some time to get back into the range of 590% to 745%.”

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Vermonters’ declining health is a big, and expensive, problem

George points to the declining health of Vermonters as a key factor in BCBSVT’s financial crisis, in addition to rising hospital costs. He said health care organizations nationwide are experiencing “extraordinary cost pressures,” as a result of “massive increases in the need for medical and pharmaceutical care.”

“As many of you may have experienced in your own lives, we are faced with these same pressures here in Vermont,” George said. “Furthermore, our data shows the continuing impact of the pandemic and an alarming decline in the overall health status for many of our members. These issues are colliding with a decade of state policy decisions to cut deeply into health insurer reserves and premiums in the name of affordability, creating the urgent situation that we are faced with today.”

Not only are there more claims, but there are bigger claims from more acute medical conditions, Gaffney said.

“The takeaway is the price of insurance is a reflection of costs, not a choice the company makes,” he said. “The company runs on narrow margins.”

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



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Commentary | Molly Gray: Standing with Afghan allies in Vermont and beyond

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Commentary | Molly Gray: Standing with Afghan allies in Vermont and beyond


I was a senior in high school when 9/11 happened. I will never forget where I was or how the day unfolded. I wasn’t yet 18, but my entire adult life would be shaped by that event. Soon after, the U.S. invaded Afghanistan, and then Iraq. U.S. involvement in Afghanistan would last 21 years, and at one point Vermont would have the highest per-capita population of servicemembers serving in Afghanistan and Iraq in the nation.

Over the last three years as the Executive Director of the Vermont Afghan Alliance, I’ve met countless veterans, former aid workers, lawyers, contractors, and others who worked in Afghanistan. U.S. efforts focused on everything from counterterrorism and the rule of law to education and agriculture.

During the chaotic withdrawal from Afghanistan in August 2021, the U.S. evacuated an estimated 125,000 Afghan allies. That was only a fraction of those who had worked with the U.S. government over two decades. An estimated 145,000 Afghans eligible for Special Immigrant Visas (SIVs) were left behind, along with countless wives and children. Many men evacuated in 2021 were told to leave their families behind with the promise of reunification within a year, yet separation continues.

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The Vermont Afghan Alliance began in 2022 as a scrappy, GoFundMe-funded, volunteer-led effort to help newly arriving Afghans learn to drive and obtain a license. In Vermont, we all know that without a car, employment options shrink quickly. Today, Afghan allies live in more than a dozen towns—from St. Albans to Bennington and Rutland to Hartford—well beyond traditional resettlement hubs like Burlington.

In 2023, I joined the Alliance as an “interim” executive director to help grow and professionalize the organization. While I never worked in Afghanistan, I spent much of my twenties with the International Committee of the Red Cross, promoting U.S. compliance with the Geneva Conventions in Afghanistan, Iraq, and at Guantánamo. My brother served in Iraq, and like so many of my generation, my adult life has been shaped by the so-called “Global War on Terror.”

I felt a deep responsibility to a community that had risked so much in support of U.S. missions abroad. I also felt a strong sense of Vermont’s hospitality—that if you welcome someone into your home, at a minimum you provide food, shelter, and safety. Finally, as someone long concerned about our demographics, the truth is simple: we are not going to birth our way out of our workforce crisis. The solution lies in welcoming people—and their talents—from across the country and the world.

Since 2023, the Alliance, together with community partners, has welcomed and served an estimated 650 Afghan allies statewide with employment, driving lessons, housing assistance, immigration legal services, civic education, health programming, and more. We’ve partnered with dozens of employers across northern Vermont eager to hire Afghan allies and willing to make small workplace adjustments. Through our driving program alone, more than 60 individuals have passed the Vermont road test. From manufacturing to healthcare, education to commercial truck driving, Afghan allies are filling high-demand jobs, strengthening our rural economy, and enriching our communities.

A recent USCRI policy report found that Afghan allies nationwide have contributed an estimated $1.79 billion in local, state, and federal taxes, including contributions to Medicare and Social Security. Contrary to harmful rhetoric, Afghan allies are not a “drain” on the system—their contributions far outweigh the short-term support provided during resettlement.

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A damaging narrative suggesting Afghan allies are “unvetted” or pose a security risk to this country is circulating from Washington. In reality, those fleeing the Taliban are among the most thoroughly vetted individuals in this country—they were screened during employment with the U.S. government, during immigration processing, and again with every status adjustment.

Afghan allies are our neighbors, friends, and colleagues. At the Alliance, the majority of staff and board members are Afghan allies themselves—thoughtful, courageous, emerging leaders raised in an Afghanistan backed by the U.S. They understand, as deeply as we do, the hope and possibility that come with a free and democratic society. I’ve been inspired daily by what these young leaders have achieved for Vermont and the talents they’ve already contributed to our state.

I’ll soon step back from the Alliance to make space for new leadership and a new chapter for the organization. What began as an interim role became far more meaningful than I ever expected. As for what’s next, I hope to bring what I’ve learned back into state government, where I can have a broader impact as we continue to address our demographic crisis and the policies coming from Washington.

To the state and local leaders, community partners, and volunteers I’ve had the opportunity to work alongside over the last few years—thank you. I’m inspired and amazed by what we can accomplish when we pool our resources and talents around a common purpose. I’m excited for the Alliance’s next chapter and for all we can continue to achieve for our newest neighbors and Vermont.

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Vt. man with lengthy criminal history sentenced for domestic assault

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Vt. man with lengthy criminal history sentenced for domestic assault


BENNINGTON, Vt. (WCAX) – A Bennington man with a lengthy criminal history was sentenced on Monday on aggravated domestic assault charges.

Max Misch, the once self-described white nationalist who has made headlines before for hate crime and gun charges, will spend six months in jail with credit for time served and two years on probation for domestic assault.

He pleaded guilty to the charge last month after authorities said he admitted to hitting a woman he knew.

His conditions of probation include avoiding contact with his victim and not possessing any deadly weapons.

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Vermont high school sports scores, results, stats for Monday, Dec. 22

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Vermont high school sports scores, results, stats for Monday, Dec. 22


The 2025-2026 Vermont high school winter season has begun. See below for scores, schedules and game details (statistical leaders, game notes) from basketball, hockey, gymnastics, wrestling, Nordic/Alpine skiing and other winter sports.

TO REPORT SCORES

Coaches or team representatives are asked to report results ASAP after games by emailing sports@burlingtonfreepress.com. Please submit with a name/contact number.

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

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Contact Judith Altneu at JAltneu@usatodayco.com. Follow her on X, formerly known as Twitter: @Judith_Altneu.

SUNDAY’S H.S. GAME

Girls hockey

Saranac-Lake Placid 5, Burlington/Colchester 1

S/LP: Emma Clark 2G. Kayla Harvey 1G. Emii Colby 1G, 1A. Addison Colby 1G. Stephanie Killbourne-Hill 2A. Lyndsee Reardon 1A. Harper Strack 1A. Allison LaHart 34 saves.

B/C: Austen Fisher 1G. Taylor Davidson 1A. Logan Jewett 30 saves.

MONDAY’S H.S. GAMES

Girls basketball 

Games at 7 p.m. unless noted

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Lyndon at Lake Region, 6 p.m.

BFA-St. Albans at North Country, 6:30 p.m. 

Mount Abraham at Fair Haven

Thetford at Hazen

Burlington at Milton

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Spaulding at Harwood

Lamoille at U-32

Montpelier at Peoples

Randolph at Oxbow

Boys basketball

Games at 7 p.m. unless noted

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U-32 at Mount Mansfield

Middlebury at South Burlington

Girls hockey

Middlebury at Burlington/Colchester, 4:20 p.m.

Essex at Rice, 5:25 p.m. 

Boys hockey

Burlington at Champlain Valley, 5:15 p.m.

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Missisquoi at Essex, 5:30 p.m.

Colchester at Rice, 7:30 p.m.

Middlebury at South Burlington, 7:40 p.m.

Spaulding at St. Johnsbury, 6 p.m.

Stowe at Harwood, 5 p.m.

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TUESDAY’S H.S. GAMES

Girls basketball 

Games at 7 p.m. unless noted

Harwood at Lake Region

Enosburg at Middlebury

Missisquoi at BFA-Fairfax

Vergennes at Williamstown

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Richford at Stowe

Essex at Colchester

Winooski at Twinfield/Cabot

Danville at Sharon, 8 p.m. 

Mount Mansfield tournament

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Rutland vs. South Burlington, 5:30 p.m.

Mount Anthony vs. Mount Mansfield, 7:30 p.m. 

Boys basketball

Games at 7 p.m. unless noted

Burr and Burton at Rice

Spaulding at Hartford

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Woodstock at Randolph

Mount Abraham at Harwood

Enosburg at Hazen

Stowe at Milton

Rutland at Burlington

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Colchester at Montpelier

Lyndon at Lake Region

Essex at Lamoille

Twinfield at Danville

Missisquoi at BFA-St. Albans, 7:30 p.m.

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(Subject to change)





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