The Commonwealth Health Reinsurance Program (CHRP) is designed to make individual health insurance coverage more affordable, particularly for unsubsidized individuals. It encourages a more stable membership base that will support increased competition among issuers in future years and, as a result, heightened consumer choice. The program lowers 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 (BY) 2023 (i.e., January 1 – December 31, 2023.) The approved CHRP for benefit years 2023 – 2026 targets a 15 percent reduction in average member premium and is funded in part by substantial federal pass-through funding. For the 2025 benefit year, the CHRP reduced individual marketplace premiums by an average of 14.8 percent and received federal pass-through funding in excess of $450 million.

In addition to lower premiums, the Virginia individual market has seen increased carrier coverage and competition, with all counties having at least two carrier choices since the inception of the CHRP. While other major policy changes, such as enhanced federal premium tax credits, Virginia’s transition to a state-based exchange, and Medicaid unwinding have also occurred during this period, the CHRP has nonetheless contributed to carrier cost stability and plan affordability by reimbursing carriers for a portion of their high-cost claims.