Advisory: SCC Seeks Public Comments Regarding Virginia’s Commonwealth Health Reinsurance Program

RICHMOND – The State Corporation Commission (SCC) is offering time for members of the public to provide comments regarding Virginia’s Commonwealth Health Reinsurance Program (CHRP).

Established for benefit year 2023 and beyond, CHRP’s purpose is to lower premium costs in the individual health insurance marketplace in Virginia. CHRP reimburses health insurance carriers for a portion of the claims of individuals with high annual medical costs and is supported mainly through federal “pass-through” funding. In order for Virginia to be eligible to receive federal pass-through funding, the state budget must include sufficient funding for CHRP.

The SCC is required by § 38.2-6602 of the Code of Virginia to establish and publish the payment parameters for the CHRP by May 1, 2023, for the 2024 benefit year. As part of this process, the SCC looks to the Virginia General Assembly regarding budgetary matters and the level of reinsurance it should seek each benefit year.

Due to uncertainty regarding the level of state funding that will be made available, and therefore, the amount of premium reduction the SCC should seek from health insurance carriers for benefit year 2024, a zero percent premium reduction from the CHRP for benefit year 2024 may be established, which would be considered a suspension of CHRP. In the event of a suspension, the conditions of the federal waiver that provides pass-through funding require the SCC to hold a 30-day public comment period prior to submitting a formal request to suspend CHRP.

Although the status of the reinsurance program for 2024 is not yet finalized, the SCC is beginning this 30-day public comment process to prepare for the possibility that the CHRP may be suspended.

Individuals wishing to comment on CHRP generally, or to otherwise comment regarding suspension of CHRP can send comments via email, no later than July 9, 2023, to reinsurance.waiver@scc.virginia.gov.

The SCC also will hold a public forum for comments on CHRP on June 20, 2023, from 10 a.m. to noon in Courtroom A of the SCC Building at 1300 East Main Street in downtown Richmond. The forum will be webcast. Anyone wishing to comment can attend in person or remotely. Those who plan to attend remotely should complete the Reinsurance Program Speaker Registration Form prior to June 16, 2023, to be contacted during the meeting to deliver comments.

For more information, visit the SCC Bureau of Insurance website at www.scc.virginia.gov/pages/Reinsurance-Program.