Bill > H0430

This bill proposes to modify Vermont's health insurance regulations by allowing registered health insurance carriers to vary premiums based on two specific factors: age and tobacco usage. Under the proposed changes, carriers can adjust premiums with certain restrictions - age-based rating can have a maximum differential of 3 to 1, meaning the oldest enrollees cannot be charged more than three times the rate of the youngest, and tobacco usage rating can have a maximum differential of 1.5 to 1. Currently, demographic rating factors like age are prohibited in premium calculations. The bill would require the Commissioner of Financial Regulation to establish rules for these rating variations, ensuring that premium deviations do not exceed 20 percent above or below the community rate after applying age and tobacco ratings. Additionally, carriers would still be permitted to offer wellness program incentives that can reduce premiums by up to 15 percent for members who participate in health promotion and disease prevention programs. The bill is set to take effect on January 1, 2026, giving insurers and regulators time to prepare for the new rating methodology.

Health and Social Services

https://legislature.vermont.gov/bill/status/2026/H.430