GOVERNOR'S VETO

Pursuant to Article V, Section 6, of the Constitution of Virginia, I veto Senate Bill 861. This legislation allows bona fide associations to constitute a benefits consortium which are authorized to offer health benefits plans to members. This legislation greatly expands the availability of multiple employer welfare arrangement (MEWA) plans beyond what is currently allowed in Virginia.

I am concerned that Senate Bill 861 addressed the health care cost concerns of only a segment of Virginians, possibly at the cost of other Virginians. This bill would undermine current efforts to stabilize the Virginia health insurance marketplace. Virginians who enroll in these Multiple Employer Welfare Arrangement (MEWA) plans may be disproportionately healthy when they enroll, leading to higher premiums for Virginians who do not qualify for a MEWA plan and remain in the marketplace. This legislation also would allow for this health insurance product to exist outside of the scope of the state’s regulatory authority.

Virginia took a positive step to increase the availability of quality, affordable, and comprehensive health care coverage through Medicaid expansion. The Governor and General Assembly also worked together to begin implementing a state based exchange and to lay out steps to create a reinsurance program. Our responsibility is to look at solutions like these to improve the quality and cost of health care for all Virginians, not pick winners and losers based on employment status. This is why I am directing the Secretary of Health and Human Resources to convene a workgroup in collaboration with the State Corporation Commission Bureau of Insurance to identify strategies to reduce the cost and improve the quality of health care coverage and increase the number of Virginians with comprehensive coverage. The workgroup will build off of the recommendations of the 2019 Market Stability Workgroup. We look forward to working together holistically to ensure all Virginians’ have lower health care costs and ensure the overall market is at a minimum held harmless by future reforms. All Virginians have a right to quality, affordable, and comprehensive coverage. My administration remains committed to this goal.

Accordingly, I veto this bill.

GOVERNOR'S RECOMMENDATION

1. After line 878, enrolled

insert

2. That the provisions of this act shall not become effective unless reenacted by the 2021 Session of the General Assembly.