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Health Care Financing Analysis for the Vermont Legislature

This memo and attached technical appendices summarize analysis associated with the health care financing study mandated in Act 71 of the 2006 legislative session. This analysis was performed under the direction of the Legislative Joint Fiscal Office and the Commission on Health Care Reform. The purpose of this analysis is to review possible economic implications associated with various funding sources, and to develop a framework within which to examine funding options and associated economic impacts for various proposals that may be advanced during this and future legislative sessions. Although several hypothetical initiatives were tested with the model framework developed, funding configurations for specific initiatives often have unique economic impacts which can only be evaluated when these initiatives are fully detailed. The models developed herein are designed to provide an objective basis for evaluating some of the economic impacts associated with these proposals and various financing options.