RD681 - Annual Report on High-Deductible Health Plans Pursuant to § 38.2-5601 of the Code of Virginia – December 18, 2020
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. 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.
The HSA market in Virginia continues to be active. There are at least 17 companies that offer HDHPs in Virginia, and at least 292,669 Virginians were covered by HDHPs at the end of 2019. This is an increase from 272,338 covered lives at the end of 2018 as reported by the same 17 companies. Overall, the market appears to have leveled off over the past two years as compared to 2016 and earlier
The Commission’s Bureau of Insurance (“Bureau") has not identified any state legislative or regulatory barriers to the sale of HDHPs that would restrict the attractiveness of HDHPs to Virginians. However, over the last few years changes in federal regulatory rules have caused marketplace disruptions in the individual health insurance market, resulting in decreased HDHP sales - from a high of 374,000 covered lives in 2016 as well as a decrease from 22 companies - of insurers offering health insurance plans in certain geographical areas in Virginia. The Bureau of Insurance will continue to monitor the Patient Protection and Affordable Care Act, 42 U.S.C. §18001 et seq. (2010) (“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.