RD631 - Report of the Bureau of Insurance on High-Deductible Health Plans - 2017

Executive Summary:

The Virginia State Corporation Commission (Commission) submits this updated report in accordance with the Virginia Health Savings Account Plan, §§ 38.2-5601 through 38.2-5604 of the Code of Virginia (2017 Report). Health Savings Accounts (HSAs) were created by federal legislation and are designed for use with high-deductible health plans (HDHPs). By law, the Commission is required to provide information on the availability of HDHPs in Virginia and recommendations for legislation that would increase the attractiveness of HSAs or eliminate barriers to their use.

There is considerable activity in the HSA market in Virginia at this time. There are at least 22 companies that offer HDHPs in Virginia, and during calendar year 2016, 52,000 HDHPS were sold covering 187,000 lives. As of year-end 2016, there were 133,000 HDHPs in force covering at least 374,000 Virginians. No state legislative or regulatory barriers to the sale of HDHPs have been identified that would restrict the attractiveness of HDHPs to Virginians. The Bureau of Insurance will continue to monitor the ACA and subsequent regulations, as well as other federal legislation and market activity in Virginia. The Bureau of Insurance has no recommendations for legislative changes at this time.