An estimated 200,000 Virginians could qualify for new savings on their Virginia’s Insurance Marketplace coverage under a new state health insurance affordability program in the biennial budget announced by Gov. Abigail Spanberger and the General Assembly.
The Virginia Health Benefit Exchange, a division of the State Corporation Commission, will administer the $150 million Virginia Health Insurance Affordability Fund. Qualifying consumers on Virginia’s Insurance Marketplace could save as much as 70% on their monthly premium.
The Health Benefit Exchange estimates that about 100,000 Virginians have lost health insurance coverage this year as a result of higher premiums.
“Most Virginians losing Marketplace coverage this year do not have any other options for health insurance coverage,” said Keven Patchett, executive director of the Virginia Health Benefit Exchange. “The new affordability program will go a long way toward helping to ease the cost burden, allowing more Virginia families to enroll in and maintain high-quality health coverage.”
In 2026, Virginia Marketplace consumers saw an average increase of 75% in what they pay for health insurance premiums. This increase was a result of a 22% increase in premiums by the health insurance carriers and the expiration of the federal enhanced premium tax credits. While some consumers enrolled in lower tier plans with less costly premiums, others were priced out altogether or canceled their plans after just a few months. Enrollment has dropped by 20% compared to this time last year.
“The new Virginia affordability program can help reverse that trend,” said Holly Mortlock, deputy director of external affairs and policy at the Virginia Health Benefit Exchange. “The Virginians who will benefit from this represent a diverse population in every region in the Commonwealth.”
The new affordability program is targeted to Virginians with household incomes between 138% and 250% of the federal poverty level. This group accounts for roughly 45% of Virginians who have lost Marketplace coverage this year, according to Health Benefit Exchange data.
The affordability fund will be available for qualifying Virginians with a Marketplace plan in 2027. Open Enrollment begins November 1 and runs through December 31.
