Virginia: *Final* avg. unsubsidized 2024 #ACA rate changes plummet from +22.4% to +1.1% via reinsurance renewal

As I noted a month ago, Virginia insurance carriers participating in the ACA individual market submitted preliminary 2024 rate filings which averaged over a 20% hike, almost entirely due to the prospect of the states reinsurance program (which had only been implemented one year earlier) possibly not being funded for the second year.

In 2023, average unsubsidized indy market premiums in Virginia had dropped by around 13% thanks to the new reinsurance program, which offloads a portion of high-cost enrollee care to the federal government in return for reducing the amount of subsidies received by low/moderate-income enrollees.

Fortunately, cooler heads eventually prevailed, and in the end the state legislature passed a budget which did indeed properly fund the program. This allowed insurance carriers to file modified rates for 2024 which include the reinsurance program being in place.

As a result, the final, approved rates for Virginia's ACA individual market next year will only go up by a nominal amount...just over 1% on average.

Meanwhile, the approved small group market rates will increase by around 7.3% overall, down only slightly from the 7.5% requested increase.