House Passage of Reinsurance Legislation is a Step Towards Lowering Healthcare Costs for Virginia’s Small Businesses

“We are pleased by today’s passage of HB 2332 in the Virginia House of Delegates to establish a state reinsurance program, which will help stabilize premiums in the individual marketplace. This legislation would greatly benefit small businesses in the Commonwealth that are struggling with their healthcare costs, especially at a time when many are facing challenges to stay afloat during the ongoing public health crisis. 

We know from our research that healthcare is one of the most challenging costs for small businesses. Establishing a state reinsurance program would help address this by stabilizing and lowering premiums in the individual marketplace, where many small business owners, employees and self-employed entrepreneurs access health coverage. In fact, more than half of all ACA marketplace enrollees nationwide own or work for a small business.

Enacting a state reinsurance program is expected to lower premium costs by up to 15% for unsubsidized families in Virginia. Most importantly, stabilizing premiums would allow small business owners to put extra dollars towards their business, especially as many rebuild in the wake of COVID-19. And it would help promote health equity for small business owners and employees who have previously been unable to afford health coverage on their own. 

We urge the Virginia Senate to swiftly pass this measure, which will lessen a financial strain on small businesses.”