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2019 SESSION
(SB1240)GOVERNOR'S VETO
Pursuant to Article V, Section 6, of the Constitution of Virginia, I veto Senate Bill 1240. This bill would authorize health insurance carriers in the Commonwealth to offer short-term, limited-duration health plans that last up to 12 months and are renewable for up to 36 months.
This legislation undermines an individual’s right to quality, affordable, and comprehensive health care coverage. This would result in many Virginians being underinsured. Short-term, limited-duration plans are allowed to discriminate against individuals with pre-existing conditions, impose lifetime and annual caps, and are not required to provide essential health benefits. A typical short-term policy does not cover maternity care, prescription drugs, or mental health care. Additionally, individuals shifting out of their respective markets into short-term, limited-duration plans are expected to be healthier than average, fueling adverse selection that would increase premiums, negatively impact insurer competition, and destabilize the individual market.
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 1240 would undermine those efforts.
Accordingly, I veto this bill.