RICHMOND, Va. (WRIC) – Some Virginians could soon pay more for their health insurance after seeing a large dip in premiums this year.
The State Corporation Commission has effectively suspended the state’s Commonwealth Health Reinsurance Program (CHRP), which helps reduce costs for people who purchase health insurance through the Affordable Care Act (ACA) marketplace.
The program, which was created by the General Assembly in 2021, works by using state funds to get a larger chunk of federal money. That money is then used to pay insurance companies for expensive claims, bringing down rates for customers.
In 2023, the first year the program was implemented, the State Corporation Commission (SCC) says rates were reduced by 17.2% compared to 2022.
However, the SCC says it “did not receive agreement from the General Assembly money committees on a level of funding or premium reduction for the 2024 Program.”
That lack of direction has led the SCC to establish a “0% premium reduction for the program.” This means that the SCC is expecting rates to once again increase for Virginians who used ACA coverage.
The SCC says premiums could increase by over 28%.