Vermont minimum wage increase could trigger costly Medicaid shortfall

A bill to raise Vermont’s minimum wage to $15 an hour hit a setback Tuesday when a legislative economist informed members of a House committee that an amendment to the measure could cost the state about $28 million over the next five years. 
The bulk of those costs are part of an effort to prevent “wage compression,” which happens when the lowest-paid employees at an organization receive a raise but employees making slightly more do not.