Healthcare (Long-Term Care)

This bill requires Vermont's Agency of Human Services to submit a report to the General Assembly about the need for residential care homes for people leaving hospitals who cannot safely recover at home but do not need nursing home care. The report must identify where such facilities are needed, explain how they could save money in the health care system, suggest funding sources, and recommend ways to partner with community organizations to develop these homes statewide. The legislation focuses on gathering information to guide future decisions about creating these specific types of care facilities rather than mandating their immediate construction.

This bill appropriates $750,000 for Vermont's dementia respite grant program to support unpaid family caregivers of people with dementia, with funds capped at $3,000 per person for individuals at or below 400% of the federal poverty level. It also allocates $100,000 for a one-year pilot program creating dementia-capable social activities in Rutland and Washington Counties, funding community organizations like senior centers with $25,000 grants. The respite program specifically covers in-home care, adult day services, and "out-of-home day" respite, prioritizing caregivers with high care burdens. It directly affects Vermonters with dementia and their 20,000 unpaid caregivers, who collectively provide 29 million hours of annual care.

This bill prohibits hospitals and long-term care facilities in Vermont from requiring nurses to work mandatory overtime beyond their scheduled shifts, except during declared emergencies, ongoing medical procedures, or unforeseen disasters. It defines "mandatory overtime" as work exceeding agreed-upon shifts (max 12 hours in 24 hours or 48 hours in a workweek) and requires employers to first seek voluntary staff or agency nurses before mandating overtime. Employers must report all mandatory overtime instances to the Vermont Department of Health within 30 days, including justification and good-faith efforts to avoid it, and must provide nurses with at least 10 consecutive hours off duty after working extended shifts. The law applies to registered and licensed practical nurses directly providing patient care in covered facilities.

This bill creates a Vermont family caregiver tax credit for residents who provide care to family members with long-term care needs. It allows eligible taxpayers to claim a refundable credit equal to 30% of qualified care expenses, up to $2,500 annually (adjusted for inflation after 2027), for expenses like respite care, adult daycare, and lost wages. To qualify, the care recipient must be a related family member aged 14+ with a medical condition that prevents them from performing two daily activities without help, and they cannot live in a licensed care facility. The credit is reduced for taxpayers with adjusted gross income over $125,000 and excludes expenses already claimed for child/dependent care. Households with eligible caregivers will also see their property tax credit eligibility expanded.

H 120 requires Vermont's Secretary of Administration to study and design a long-term care trust fund. The study must examine funding through income-based contributions (starting July 2026 for Vermont residents with taxable income over 150% of the federal poverty level), a two-year payment requirement for benefits, and how the fund would interact with Medicaid. The Secretary must submit a report by January 15, 2026, including proposed legislation to establish the fund. This bill would directly affect Vermont residents who pay into the program and future beneficiaries of long-term care services.