An Act to amend and reenact § 38.2-6604 of the Code of Virginia, relating to Commonwealth Health Reinsurance Program; extension of program; percentage goal to decrease premiums.
HB327 extends and updates Virginia’s Commonwealth Health Reinsurance Program. The bill amends the special fund used to finance the program and authorizes the State Corporation Commission to use funds received under the federal State Innovation Waiver, along with any appropriations, to support reinsurance payments and program administration. It also states a policy goal of reducing individual-market premiums by up to 20 percent, depending on available revenue, and allows remaining funds to be used for additional waiver-related purposes after reinsurance claims are paid for a benefit year.
The bill also directs the State Corporation Commission to apply for a five-year extension of the existing federal Section 1332 State Innovation Waiver so the Commonwealth can continue operating the reinsurance program. The extension must be implemented consistently with Virginia’s existing reinsurance chapter, as amended by the bill. The measure clarifies that the program’s payments are not an entitlement or a claim on other state funds, and it limits the Commission’s financial responsibility to money actually available in the special fund and federal pass-through funding.
HB327 amends § 38.2-6604 of the Code of Virginia, affecting the Commonwealth Health Reinsurance Program Special Fund and the statutory framework for Virginia’s individual-market reinsurance program. It reinforces the separation of program funding from other State Corporation Commission revenues, preserves unspent fund balances for future use, and authorizes continued use of waiver-related funds for program operations and related purposes. The bill also requires the SCC to seek a five-year extension of the federal waiver needed to keep the program in place, which affects insurers, individual-market consumers, and the administration of Virginia’s health insurance market.
The bill appears to have been broadly favorable and noncontroversial in the available record. There are no committee transcripts or recorded votes provided, and the bill was enacted as Chapter 793, indicating it received sufficient legislative support to pass. The statutory changes suggest a policy consensus around continuing the reinsurance program as a tool to stabilize premiums in the individual health insurance market.
No specific points of contention are documented in the provided materials. Based on the text, any potential debate would likely center on the size and reliability of funding for the program, the appropriateness of using waiver and special-fund revenues for reinsurance, and the extent to which the Commonwealth should commit to premium reduction goals. The bill addresses those concerns by limiting the Commission’s obligation to available funds and by expressly prohibiting use of unrelated SCC revenues.