Hospitals and insurance companies had every reason to fight the plan. So if you’re going to offer every Vermonter more generous insurance coverage than they currently have, and somehow make the math work, you have to do two things: (1) raise taxes, and (2) pay doctors and hospitals less. We covered #1 above, now let’s talk about #2.The Green Mountain plan sought to require hospitals and doctors to accept Medicare-like reimbursement rates for their privately-insured populations. Because private insurers pay providers more than Medicare does, this would have amounted to a 16 percent cut in payments to doctors and hospitals, according to the analysis by Avalere Health. Needless to say, the doctor and hospital lobbies weren’t big fans of the Vermont plan, and fought furiously to sink it.