A cap on drug prices at Vt. hospitals will save millions. Hospitals say they can’t afford it

A law passed by Vermont lawmakers last week would cap how much hospitals in Vermont can charge for specialty drugs — medications used to treat cancers and autoimmune conditions, like Crohn's disease, often administered through injections or infusions.

It’s the latest effort to clamp down on the skyrocketing growth of health care costs in the state. Right now, Vermont hospitals have the highest markups in the country for drug prices paid by commercial insurers by far — almost twice the national average , according to a 2024 report from the RAND Corporation.

The cap would be a major change: It would mean drug prices at Vermont hospitals would be the lowest of any state in the country. That would save BlueCross BlueShield of Vermont an estimated $46 million a year and directly reduce t