Health Bill Protecting VA Subscribers Passes Senate Committee - Monday February 2, 2015
Richmond, VA – Today, the Senate Commerce and Labor Committee voted to pass SB 1405, a bill that prohibits health care insurers from distributing reserves based on the decision of one jurisdiction when such a disbursement would affect Virginia rate payers. SB 1405 requires the Virginia Corporation Commission to review such disbursement decisions and attempt to prohibit the decision, when necessary, to protect Virginia consumers.
Senator Favola, the bill’s chief patron, expressed support for the committee’s decision: “Improving our healthcare system should be a priority for this legislature. SB 1405 protects the interests of Virginia subscribers and I am very pleased that the committee moved to report the bill.”
Background: In December, The D.C. Insurance Commissioner determined that non profit insurer CareFirst operated with excessive reserves and required the company to reimburse the District $56 million. Virginia subscribers would be hurt by this reimbursement requirement, and they outnumber CareFirst DC subscribers two to one. SB 1405 addresses the issue by clarifying that the State Corporation Commission can give appropriate orders to prevent harm to Virginia subscribers.
SB 1405 will be discussed in the Senate later this week.
Senator Barbara A. Favola represents Virginia’s 31st district, which includes parts of Arlington and Fairfax Counties, and a portion of Loudoun County. For the 2015 session, Senator Favola sits on the Local Government, Rehabilitation and Social Services, and Transportation Committees.