Commonwealth Health Reinsurance Program (CHRP)
The State Corporation Commission established the Commonwealth Health Reinsurance Program (CHRP) to increase affordability in the individual health insurance market. The goal is to lower premiums by up to 20 percent, depending on available revenue. Virginia received federal approval to establish the CHRP (under a Section 1332 waiver) for an initial period of up to five years, beginning with benefit year 2023. For information on the process for obtaining the required waiver for the CHRP, please visit the Reinsurance Waiver Page
The CHRP is designed to operate as a traditional reinsurance program by reimbursing ACA individual market health insurers for a percentage (coinsurance rate) of an enrollee’s claims costs that exceed a specified threshold (attachment point) and up to a specified ceiling (reinsurance cap). By reducing some of the risk that carriers typically factor into their premium rates, the CHRP achieves lower premium costs for consumers. These elements are referred to as the program parameters; additional information is available in the Program Parameters section below. The CHRP is supported mainly through federal pass-through funding. These funds are based on federal savings from reduced premium tax credits (PTCs) resulting from lower health insurance premiums.
Additional information about the program may be accessed below.
Per the terms of the federally-approved Section 1332 State Innovation Waiver, Virginia is required to hold an annual public forum to provide information about the Commonwealth Health Reinsurance Program and provide an opportunity for public comment. Below are presentations from these meetings as well as any public comment that was provided.
2024 Public Forum
- June 13, 2024 Presentation
- No comments were made at the meeting and no written comments were submitted
2023 Public Forum
- June 20, 2023 Presentation
- No comments were made at the meeting, but two organizations provided written comments:
Annual Report to Federal Regulators
After each year of the Reinsurance program, the terms of the federal waiver require Virginia to submit an annual report including metrics on market enrollment, premium cost, as well as program funding and expenditures. Links to annual reports can be found below.
Annual Report to the Virginia Legislature
Pursuant to § 38.2-6603 B of the Code of Virginia, the State Corporation Commission is required to submit a report on the operation of the Commonwealth Health Reinsurance Program (CHRP) to the Governor and the Chairs of designated legislative committees annually by November 1. Links to these reports are provided below:
Section 38.2-6602 B 2 of the Code of Virginia requires the SCC to establish and publish the payment parameters for the CHRP by May 1 of the year prior to the CHRP benefit year. The Bureau of Insurance provides to the General Assembly money committees the costs for various actuarial scenarios of premium reduction in order to obtain clear direction on the extent of funding for a reinsurance program each benefit year.
| CHRP Payment Parameters (by Benefit Year) | Year | ||||
|---|---|---|---|---|---|
| 2023 | 2024 | 2025 | 2026 | 2027 | |
| Attachment Point | $40,000 | $45,000 | $45,000 | ||
| Cap | $155,000 | $175,000 | $175,000 | ||
| Coinsurance | 70% | 70% | 70% | ||
| Targeted Premium Reduction (before morbidity impact) |
15% | 15% | 15% | ||
| Actual Average Premium Reduction from Reinsurance | 17.30% | 16.40% | 14.80% | ||