RD573 - Operation of the Commonwealth Health Reinsurance Program – November 1, 2023
The Commonwealth Health Reinsurance Program (CHRP) is designed to lower the cost of health insurance for consumers in the individual market by reimbursing carriers for a portion of their high-cost claims. As directed by the General Assembly in 2021, the Virginia Bureau of Insurance (Bureau) applied for and received federal approval to establish a reinsurance program in the individual health insurance market for five years beginning in benefit year 2023 (i.e., January 1-December 31, 2023.)
The approved 2023 CHRP targets a 15 percent reduction in average member premium and is funded in part by $331.9 million in federal pass-through funding. For benefit year 2024, the program will again target a 15 percent reduction in average member premium. This has resulted in approved individual market rates for 2024 that are on average 2.5 percent lower than they were in 2023. In addition to lower premiums in 2023 and 2024, the Virginia individual market has seen increased carrier coverage and competition, with all counties having at least two carrier choices, and 78 percent of localities having three or more carrier choices.