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2019 SESSION

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(SB1027)

GOVERNOR'S VETO

 

    Pursuant to Article V, Section 6, of the Constitution of Virginia, I veto Senate Bill 1027, which would direct the Commissioner of Insurance to request federal permission for insurance carriers to offer catastrophic plans to all individuals purchasing coverage through the Marketplace.

    This legislation would place consumers at risk of being underinsured and would fragment Virginia’s federal marketplace risk pool, leading to rapidly increasing premiums. Senate Bill 1027 would allow insurance carriers and individuals to circumvent the protections in the Affordable Care Act. Under current law, catastrophic plans are only available for individuals who are younger than 30 years of age and individuals who qualify for a hardship or affordability exemption. Catastrophic plans typically have lower premiums because they require individuals to very high deductibles before the plan pays for health care costs. Many individuals enrolled in a catastrophic health plan may forego medical services because of cost. Individuals with minimal health care needs are more likely to purchase these threadbare plans, leaving individuals with more complex medical conditions in traditional marketplace plans. This adverse selection would likely contribute to an increase in Virginia marketplace premiums across the board. 

    Virginia took a positive step to increase the availability of quality, affordable, and comprehensive health care coverage through Medicaid expansion for individuals whose income is lower than 138% of the Federal Poverty Line. Our responsibility  now is to look at solutions such as those proposed by the Market Stability Workgroup in order to improve affordability across the Commonwealth’s health insurance markets. Senate Bill 1027 would undermine those efforts.

    Accordingly, I veto this bill.