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Panel backs repeal of 50% tobacco surcharge in individual market
Summary
The subcommittee reported HB 220 9–0, a bill that would eliminate language permitting insurers to charge up to 50% higher premiums for tobacco users; supporters said repeal would lower premiums and increase enrollment.
Delegate Hope presented House Bill 220, which would repeal statutory language allowing insurers to charge up to 50% higher premiums for tobacco users. Hope cited a Joint Commission on Health Care study and an Urban Institute simulation suggesting elimination of the tobacco surcharge could reduce individual-market premiums and increase enrollment.
Committee members asked how the surcharge is applied; Hope explained the law permits plans to charge higher premiums for individuals identified as tobacco users. Industry witnesses, including the Virginia Association of Health Plans, said the surcharge was an ineffective design and supported repeal. Public-health groups including the American Heart Association, the American Cancer Society Cancer Action Network and the American Lung Association also testified in favor, stressing access to cessation services.
The subcommittee voted to report HB 220 out by a vote of 9–0.
