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Subcommittee passes bill to make repeal of tobacco surcharge permanent
Summary
HB 1639 would remove the sunset on a tobacco surcharge repeal; the committee approved a substitute that extends SCC study for one more year and passed the bill 7-0 after stakeholder testimony supporting improved marketplace enrollment.
Delegate Patrick Hope (committee transcript identifies him as the sponsor) presented HB 1639, which would repeal the sunset on the tobacco surcharge. Background: the surcharge originally allowed health plans to increase premiums for tobacco users by up to 50 percent. A Joint Commission on Health Care study and subsequent analysis by the State Corporation Commission found that the surcharge created adverse selection, discouraging younger, healthier people from enrolling and concentrating higher-cost tobacco users in the market.
Why it matters: Supporters including the American Cancer Society and the American Heart Association argued repeal improved marketplace access and enrollment, especially in higher-tobacco-use areas, while the SCC’s analysis found only minimal overall premium impact (less than 1% across enrollees after earlier repeal actions).
The sponsor offered a substitute amendment at the SCC’s request to continue one more year of SCC study. The committee adopted the substitute and subsequently passed the bill by recorded vote, 7-0.
Supporters said repealing the surcharge reduces barriers to enrollment and improves risk-pool balance; the SCC will continue to monitor enrollment and financial impacts. The bill now advances in the legislative process as reported by the subcommittee.
