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
NOTICE: The Virginia State Corporation Commission (SCC) will hold a virtual public forum on the Commonwealth Health Reinsurance Program (CHRP) June 13, 2024, at 3:00 p.m.
This public forum, required to be held annually per the terms of Virginia’s federally-approved Section 1332 State Innovation Waiver, will provide opportunities to learn about and comment on the program. The meeting will be webcast, and there will be an opportunity to provide comments during the forum. Virtual participants who wish to comment should complete the CHRP Registration Form and email it to reinsurance.waiver@scc.virginia.gov by 5 p.m. Friday, June 7, 2024.
Those who prefer to provide written comments on the Reinsurance program may do so by July 13, 2024 via mail to Bradley Marsh c/o SCC, P.O. Box 1197, Richmond, VA 23218 or via email to reinsurance.waiver@scc.virginia.gov. (Questions regarding this notice may be directed to either listed address.)
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.
Presentations and comments from previous forums may be accessed 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% | |||
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, 3 p.m.
- Register to speak (by 5 p.m. June 7, 2024)
- Access link to webcast
2023 Public Forum
- June 20, 2023 Presentation and 30-day written comment period ending July 9, 2023
- No comments were made at the meeting, but two organizations provided written comments: