SCC News

RICHMOND – The State Corporation Commission’s (SCC) Bureau of Insurance (Bureau) is seeking public comments regarding Virginia’s proposed essential health benefits (EHB) benchmark plan application for plan year 2025. The final application is due to the Centers for Medicare & Medicaid Services (CMS) by May 3, 2023.

Legislation passed by the 2023 Virginia General Assembly directs the Bureau to select a new EHB benchmark plan for plan year 2025. The EHB benchmark plan sets the required benefits that must be provided by comprehensive fully-insured individual and small group health insurance coverage issued in Virginia. Before Virginia adopts the new EHB benchmark plan, the Bureau must release the plan for public comment and then obtain approval of the plan from CMS.

In 2022, the General Assembly directed the Bureau to study and analyze the Commonwealth’s options for a new EHB benchmark plan for potential implementation in 2025 and to report its findings. The SCC utilized federal grant money to review Virginia’s EHB benchmark plan to present potential updates, including additional health benefit options. As part of this process, a consulting actuary for the Bureau also provided cost estimates of additional health benefits recently considered by Virginia’s Health Insurance Reform Commission and compared Virginia’s EHB benchmark plan to those of several other states.

Among the potential benefits studied for inclusion in Virginia’s 2025 EHB benchmark plan were medically necessary prosthetic devices and components as well as formula and enteral nutrition products as medicine. The recently-passed 2023 legislation directs the Bureau to add these benefits to the EHB benchmark plan in addition to the current benefits. Following public comment, the proposed 2025 EHB benchmark plan application must be approved by CMS in advance. A CMS determination on Virginia’s proposed 2025 EHB benchmark plan is expected by late summer 2023.

In addition to the legislation regarding the 2025 EHB benchmark plan, the 2023 General Assembly passed legislation that would establish a formalized process for future review and updates to Virginia’s EHB benchmark plan.

Public comments on Virginia’s proposed EHB benchmark plan application for plan year 2025 must be submitted to the Bureau of Insurance at: EHBComments@scc.virginia.gov by Wednesday, April 12. Those comments will be published on the Bureau’s website at Virginia SCC - Essential Health Benefits Benchmark Plan.

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Contact: Katha Treanor, 804-371-9141

RICHMOND – Strong winds, tornadoes, hailstorms, lightning, and flash floods – these are just some of the severe weather events that can accompany the arrival of spring.

Severe weather can strike anywhere and anytime. Advance planning is the key to protecting yourself, your loved ones and your property – both physically and financially.

The State Corporation Commission’s (SCC) Bureau of Insurance (Bureau) encourages Virginians to plan now for the possibility of extreme spring weather. “Assess your risk and make sure you have the insurance coverage you need if severe weather causes damage to your home, business, vehicles or other property,” said Virginia Insurance Commissioner Scott A. White.

The Bureau encourages Virginians to consider the following:

• Review your insurance policy and contact your insurance agent or company if you have any questions about your coverage.
• Create a detailed inventory of your belongings including photos and receipts of your property if you have them. The National Association of Insurance Commissioners (NAIC) provides a free home inventory app that can help you with this process. Additionally, you can use the NAIC’s Home Inventory Checklist as a guide. Store your home inventory checklist and insurance policy information in a secure, waterproof location.
• Most homeowners and renters insurance policies do not cover losses due to flooding. If you believe that you may need flood coverage, talk to your insurance agent about how to obtain flood insurance or visit the National Flood Insurance Program website at floodsmart.gov. Keep in mind that there is typically a 30-day waiting period before a flood insurance policy takes effect.

Automobile other-than-collision insurance coverage, often called "comprehensive" insurance coverage, helps pay to repair or replace vehicles if they are stolen or damaged by such things as fire, water, wind, hail, vandalism, glass breakage, falling objects or contact with an animal.

If your home, business, vehicles, or other property are damaged due to severe weather, the Bureau recommends that Virginians keep several steps in mind:

• Contact your insurance company or agent as soon as possible after the danger or risk has passed.
• Take photos of your damaged property once it is safe to do so.
• Save the receipts for the costs of any emergency repairs that are needed to prevent further damage to your property.
• If you feel you are treated unfairly, contact the Bureau of Insurance Property & Casualty Consumer Services team at 804-371-9185 or file a complaint.

The Bureau offers free consumer guides for homeowners and commercial property owners with information about what to do when a disaster strikes. These and many other consumer insurance guides are available on the Bureau’s website at scc.virginia.gov/pages/Insurance.

The Bureau’s specially trained staff can assist consumers with their insurance-related questions and concerns. To learn more, contact the Consumer Services Section of the Bureau’s Property and Casualty Division toll-free at 1-877-310-6560 or in Richmond at 804-371-9185.

For additional emergency preparedness information related to various types of disasters and hazards, visit the Virginia Department of Emergency Management website at vaemergency.gov.

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Contact: Katha Treanor, 804-371-9141

RICHMOND – Individual retirement accounts (IRAs) are a popular way for many Americans to build their savings. They can take various forms including traditional IRAs, Roth IRAs, Simplified Employee Pension IRAs, self-directed IRAs and others.

To open an account, an individual must find a bank, trust company, broker-dealer or other Internal Revenue Service (IRS)-approved company to act as the account custodian.

Like other IRAs, self-directed IRAs provide another option for those looking to invest retirement funds. Before opening a self-directed IRA, the State Corporation Commission (SCC) Division of Securities and Retail Franchising (Securities Division) encourages Virginians to consider how self-directed IRAs work and how they differ from IRAs offered by banks, registered broker-dealers, investment advisors and other IRS-approved custodians.

“With self-directed IRAs, it is up to the investor to evaluate and understand the investments in his or her account,” said Doug Joyce, director of the SCC’s Securities Division. “Custodians are only responsible for holding and administering the assets in an account and typically do not check the safety or legitimacy of an investment or accuracy of any financial information that is provided for an investment in their account. Custodians of those accounts have limited duties to investors. A self-directed IRA investor has sole responsibility for investment decisions,” he said.

Self-directed IRAs generally allow investment in a broader range of assets than is permitted by most other IRA custodians. These investments may include non-traditional assets such as real estate, precious metals, crypto assets, private placement securities and promissory notes.

Additionally, promoters of self-directed IRAs may not be licensed investment professionals and may not be subject to the same regulatory oversight and investor protection rules that govern the securities industry.

Fees for self-directed IRAs may be higher than those for other types of IRAs and may include transaction fees, account opening fees, annual account fees, administrative fees and asset-specific fees in the account. Self-directed IRAs are also subject to more complicated IRS tax rules than other types of IRAs.

“Understand the benefits and risks of any investment,” Joyce said. “Ask questions, get details in writing and make sure that the investment and the person offering it are licensed or registered, if necessary.” Joyce encourages Virginians to independently verify information such as prices and asset values in self-directed IRA account statements; avoid unsolicited investment offers and claims of “guaranteed” returns or “risk-free” investments, and consult with a licensed, unbiased investment professional or attorney before investing.

Virginians can contact the Securities Division with certain securities-related questions, including any questions about possible investment fraud, at 804-371-9051 in Richmond or toll-free at 1-800-552-7945. For more information, visit the Division’s website at scc.virginia.gov/pages/Consumer-Investments or the North American Securities Administrators Association at nasaa.org.

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Contact: Katha Treanor, 804-371-9141

RICHMOND – The State Corporation Commission (SCC) approved a revised fuel rate for customers of Appalachian Power Company (APCo) that includes a mitigation proposal that would spread the recovery of its $361,411,867 deferred fuel balance over two years. The fuel rate increase has been in effect on an interim basis, subject to further modification, since November 1, 2022, and no additional changes were approved. For a residential customer using 1,000 kilowatt-hours of electricity per month, it represents an increase to the average monthly bill of $20.17. Without the mitigation proposal, however, the increase would have been $33.24 per month for the same usage.

The fuel rate is the portion of the electric bill that pays for the fuel used to generate electricity and costs associated with power purchased by the utility company to serve its customers.

In its final order, the Commission stated: “… we are deeply concerned about the significant rate increase requested in this case, and its impact on customer bills. The impact of the increase is worsened by its introduction during the winter months, which are typically higher usage months, and by other recent APCo rate increases. We are mindful of the numerous public comments and concerns expressed about the impact of such rate increases on APCo’s customers and have reviewed this matter carefully. APCo is, however, entitled by law to recover its prudently incurred fuel costs…”

The Commission directed the SCC staff to conduct a fuel audit for the period from January 1, 2019, to December 31, 2022, and to include the results of the fuel audit in its pre-filed testimony in APCo’s next fuel factor proceeding. As part of the fuel audit, the Commission directed Staff to analyze the reasonableness of APCo’s coal procurement activities.

The Commission also directed APCo to take additional steps within 60 days of its order to advise customers how they may contact APCo for bill assistance and to set up budget billing for their accounts.

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Contact: Ford Carson, 804-371-9141

Case Number PUR-2022-00139
View Final Order

RICHMOND – Helping Americans understand their consumer rights and make informed choices – that’s the goal of National Consumer Protection Week. The State Corporation Commission (SCC) is pleased to join the Federal Trade Commission and other federal, state and local agencies and organizations for this annual awareness campaign, which runs from March 5-11, 2023.

Whether you are shopping for a mortgage or automobile loan, have questions about your insurance policies or want to understand charges on your utility bill, the SCC may be able to help. SCC staff may provide information as well as assist with questions and concerns involving entities that the SCC regulates including insurance companies and agents, state-chartered financial institutions, investment firms and their representatives, retail franchises, and investor-owned utilities providing electric, natural gas, water, sewer and landline telecommunications service.

The SCC provides outreach and consumer guides in addition to other materials on topics such as understanding mortgage loans, investing wisely, saving energy, explaining various types of insurance, and more.

When it comes to regulated businesses and services, the SCC encourages Virginians to shop around and understand their options; thoroughly evaluate any offer; keep written records of all transactions; find products and services that suit their particular needs; review statements and bills regularly; learn to spot scams, and verify that an individual or company is properly licensed or registered.

Consumers should attempt to resolve issues directly with a regulated individual or company first. If the issue is not resolved to the consumer’s satisfaction, however, they can contact the SCC through its toll-free number at 1-800-552-7945 or call the appropriate SCC division in Richmond using the numbers below:

• Bureau of Insurance – 804-371-9741
• Bureau of Financial Institutions – 804-371-9657
• Division of Securities and Retail Franchising – 804-371-9051
• Division of Public Utility Regulation – 804-371-9611
• Office of the Clerk – 804-371-9733
• Division of Information Resources – 804-371-9141

Information about the complaint process, along with related forms, are available from the Consumers section of the SCC website at scc.virginia.gov.

If the SCC does not have regulatory authority over a particular company, individual, product or transaction, its staff will assist consumers whenever possible by providing a referral to any appropriate local, state or federal authority for assistance. These authorities may include the Office of the Attorney General, law enforcement agencies, or the Federal Trade Commission (which consumers can also contact directly through its toll-free helpline at 1-877-FTC-HELP (1-877-382-4357)).

To learn more about National Consumer Protection Week, visit consumer.ftc.gov.

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Contact: Jordan Bondurant, 804-371-9141

RICHMOND – The State Corporation Commission (SCC) reminds Virginia consumers that they can sign up for health insurance coverage or make changes to an existing plan now through HealthCare.gov. This open enrollment period ends January 15, 2023.

Coverage will start February 1, 2023 for all enrollments occurring through January 15 at HealthCare.gov. Open enrollment – which usually runs from November through January – is the only time consumers can enroll in coverage without a qualifying life event that makes them eligible for a special enrollment period.

For 2023, the federal government has continued enhanced premium credits to help cover premium costs for health insurance purchased through HealthCare.gov and more Virginians are now eligible for financial assistance. The federal government also recently finalized a new rule which makes this financial assistance available to family members of certain workers whose employer-provided insurance may not be affordable for spouses and dependents.

Health insurance plans sold through the federal marketplace, known as qualified health plans, must provide coverage for 10 essential health benefits which include:

Qualified health plans generally prohibit denial of coverage for pre-existing conditions, require zero copays on a range of preventive care, and have no dollar limits on covered benefits.

Through HealthCare.gov, Virginia residents may access financial assistance to lower costs for health insurance for plan year 2023. There are now at least two health carriers participating in the marketplace in every county and region across the Commonwealth.

To begin an application or to make changes to existing coverage, consumers can visit HealthCare.gov or call the Marketplace Call Center at 1-800-318-2596, TTY: 1-855-889-4325. For free in-person or online help, or help over the phone, Virginia residents have several options.

• Local navigators and assisters can be found at the Enroll Virginia website: ENROLL Virginia! (enrollva.org) or by calling 1-888-392-5132.
• Certified agents and brokers in their community can be found by visiting Get help applying and more | HealthCare.gov

Virginia is on track to complete the transition to a Virginia-based health insurance marketplace by fall of 2023. To learn more about the Virginia Exchange or to obtain additional contact information, visit the SCC Exchange website at HBE Consumer Contact.

RICHMOND – The State Corporation Commission (SCC) has concluded a revised triennial review of the base rates for Appalachian Power Company that reduces the annual rate increase that has been in effect on an interim basis since October 1, 2022.

For a residential customer using 1,000 kilowatt-hours of electricity a month, the new rates result in a monthly charge of approximately $6.00 compared to the interim charge of $8.55. Appalachian Power will submit revised tariffs to the SCC that recalculate the bill impact of the application of the new rates and refund the difference with interest to customers within 90 days of the Commission order. 

In August, the Supreme Court of Virginia found that the SCC did not have the authority last year to decide whether it was reasonable for Appalachian Power to include costs associated with the closure of several coal-fired plants in its accounting expenses between 2017 and 2019. The Commission had found that the costs, called an asset impairment charge, were unreasonable.

The Court directed the SCC to revise its final decision in the triennial review and remanded the case to the Commission for further proceedings.

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Contact: Andy Farmer, 804-371-9141

Case Number PUR-2020-00015 - Application of Appalachian Power for a 2020 triennial review of its base rates, terms, and conditions

Order on Remand - 12/21/2022

RICHMOND – The State Corporation Commission (SCC) has accepted a replacement for the performance standard in the Commission’s August 5, 2022, final order approving the application for the Coastal Virginia Offshore Wind Project by Dominion Energy Virginia.

In an Order on Reconsideration, the SCC approved a stipulation proposed by Dominion, the Office of the Attorney General’s Division of Consumer Counsel, Walmart, Inc., Appalachian Voices, and the Sierra Club that replaces the performance standard with five elements addressing, among other things, construction cost and carrying cost sharing, operating performance provisions, impact of the federal Inflation Reduction Act, and the scope of the agreement.

In approving the stipulation, the Commission stated that it has not otherwise expanded, or modified approval or cost recovery set forth in the August 5 final order. The SCC further noted that those proposing the stipulation “assert, unanimously in support thereof, that the [ ] Stipulation adequately protects the interests of consumers. In addition, Clean Virginia and the Committee, though not formal parties to the [ ] Stipulation, confirm that they have no opposition to the Commission's approval thereof.”

In its order, the Commission reiterated the significant impact that this project will have on customers’ electric bills. The project likely represents the largest capital investment, and single largest project, in the history of the Company. “[T]he electricity produced by this Project will be among the most expensive sources of power – on both a per kilowatt of firm capacity and a per megawatt-hour basis – in the entire United States,” the SCC stated.

In a concurring opinion, Commissioner Jagdmann wrote that she agrees with the Order on Reconsideration in all respects. She emphasized that the General Assembly is uniquely positioned to align some of the costs of the project that currently will be paid solely by most of Dominion customers with the economic development benefits and clean energy attributes of this project that the operative statutes recognize advantage the Commonwealth more broadly:

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Contact: Andy Farmer, 804-371-9141

Case Number PUR-2021-00142 - Application of Dominion Energy Virginia for approval and certification of the Coastal Virginia Offshore Wind Project

Order on Reconsideration - 12/15/2022

RICHMOND – The State Corporation Commission (SCC) reminds Virginia consumers that they can sign up for health insurance coverage or make changes to an existing plan now through HealthCare.gov. This open enrollment period ends January 15, 2023.

For coverage to begin on January 1, 2023, consumers must enroll at HealthCare.gov/get-coverage by midnight on December 15, 2022. Enrollments occurring on December 16 and through January 15, will be for coverage starting February 1, 2023. Open enrollment is the only time during the year consumers can enroll in coverage without a qualifying life event that can make you eligible for a Special Enrollment Period.

For 2023, enhanced premium credits have been continued and more Virginians will now be eligible for financial assistance. The federal government recently finalized a new rule that makes financial assistance available to family members of certain workers whose employer-provided insurance may not be affordable for spouses and dependents.

Health insurance plans sold through the federal marketplace, known as Qualified Health Plans, must provide coverage for 10 essential health benefits that include:

These Qualified Health Plans also prohibit denials for pre-existing conditions, require zero copays on preventive care, and have no lifetime maximums on covered benefits. Through HealthCare.gov, Virginia residents can access financial assistance to lower costs for health insurance for plan year 2023.

For coverage that begins January 1, 2023, there are now at least two health carriers participating in the marketplace in every county and region across the Commonwealth. To begin an application or to make changes to existing coverage, consumers can visit HealthCare.gov or contact the Marketplace Call Center at 1-800-318-2596, TTY: 1-855-889-4325. For free in-person or online help, or help over the phone, Virginia residents have several options.

• Local navigators and assisters can be found at the Enroll Virginia website: ENROLL Virginia! (enrollva.org) or by calling 1-888-392-5132.
• Certified agents and brokers in their community can be found by visiting Get help applying and more | HealthCare.gov.

Virginia is on track to complete the transition to a Virginia-based health insurance marketplace by fall of 2023. To learn more about the Virginia Exchange or to obtain additional contact information, visit the SCC Exchange website at HBE Consumer Contact.

RICHMOND – Although the Atlantic Hurricane season ends November 30, the State Corporation Commission’s Bureau of Insurance (Bureau) reminds Virginians that floods can happen anywhere and anytime – not just during hurricane season. Heavy rains, saturated soil, melting snow and ice, broken dams and a lack of vegetation due to wildfires or other causes are just a few factors that can contribute to flooding.

Floods are the most common and costly natural disaster in the United States, causing damages in the billions of dollars each year. Just one inch of water can cause as much as $25,000 damage to your home, according to the National Flood Insurance Program (NFIP).

“It only takes a few inches of water to cause major damage to your home and other property. Assess your flood risk and take steps now to protect yourself physically and financially from floods,” said Virginia Insurance Commissioner Scott White. “Having flood insurance can help you recover faster once the floodwaters recede.”

Standard homeowners, renters and commercial insurance policies issued in Virginia typically do not provide coverage for damage caused by floods, surface water or storm surge. However, coverage may be available to homeowners, renters and businesses in eligible communities through the NFIP. The federally-backed flood insurance offered through the NFIP provides separate coverage for structures and contents in the event of flood damage. In addition to the NFIP, flood insurance coverage may be available through some private insurers.

Advance planning is crucial since policyholders typically must wait 30 days for a flood insurance policy to take effect. To learn more about flood insurance, contact your insurance agent or the NFIP at 1-800-427-4661, or visit floodsmart.gov. Be sure to ask whether your flood insurance policy covers your personal property.

Virginia residents should assess the risk of potential flood damage and determine if they live in a community eligible to participate in the NFIP.  If you live in a floodplain near a river, or if you live near the coast, it is especially important to consider the need for flood insurance coverage.

Unlike homeowners insurance, auto insurance usually does include damage caused by flooding provided you have “other-than-collision” (often referred to as “comprehensive”) coverage on your vehicle. In addition to water damage caused by flooding, comprehensive coverage typically helps pay to repair or replace vehicles if they are stolen or otherwise damaged by such things as fire, water, wind, hail, vandalism, glass breakage, falling objects or contact with an animal. Check your auto insurance policy or contact your insurance agent if unsure whether your vehicle is protected in the event of flood damage.

For questions or information about a variety of insurance-related topics, contact the Virginia Bureau of Insurance in Richmond at 804-371-9741 or toll-free at 1-877-310-6560 or visit its website at scc.virginia.gov/pages/insurance.

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Contact: Katha Treanor, 804-371-9141