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Tobacco Surcharges Now Prohibited in Small Group Market

 

On March 23, 2023, Gov. Youngkin signed SB 1011/HB 1375 into law. The law prohibits health insurance carriers in Virginia from charging higher premiums for coverage in the small group and individual markets based on tobacco use. The prohibition applies to policies issued or renewed in Virginia on and after January 1, 2024, and sunsets on January 1, 2026.

The law also requires an annual report from the State Corporation Commission on premium reductions related to the elimination of the tobacco surcharge and increased enrollment trends. Employers sponsoring health plans in Virginia should be aware of this development and contact their carrier for further information.

SB 1011»

PPI Benefit Solutions does not provide legal or tax advice. Compliance, regulatory and related content is for general informational purposes and is not guaranteed to be accurate or complete. You should consult an attorney or tax professional regarding the application or potential implications of laws, regulations or policies to your specific circumstances.

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