Virginia is creating a new fund that could lower monthly premiums for some Virginians who buy coverage through the state’s insurance marketplace.
The $150 million Virginia Health Insurance Affordability Fund will be administered by the Virginia Health Benefit Exchange, which operates Virginia’s state-run insurance marketplace.
Keven Patchett, executive director of the exchange, said the program is aimed at people who do not qualify for Medicaid or Medicare, but still struggle to afford private coverage through the marketplace.
An estimated 200,000 Virginians could qualify. The program applies to people with household incomes between 138% and 250% of the federal poverty level, or roughly $22,000 to $40,000 a year.
Patchett said qualifying consumers could save as much as 70% on their monthly premiums.
“Part of the purpose of this program is to bring back Virginians who dropped coverage because they couldn't afford it, and hopefully even encouraging some additional uninsured Virginians to take advantage of the benefits of health insurance,” Patchett said.
The new fund comes after a sharp increase in what many marketplace customers paid for coverage this year.
According to the Virginia Health Benefit Exchange, consumers saw an average 75% increase in what they pay for health insurance premiums in 2026. The exchange said that was driven by a 22% increase in carrier rates and the expiration of enhanced federal premium tax credits.
Patchett said marketplace enrollment has dropped about 20% compared with this time last year, estimating about 100,000 Virginians have lost marketplace coverage this year because of higher premiums.
Patchett said the new state program will not solve every affordability challenge, but it could help fill part of the gap left by the expired federal tax credits.
“I think it is going to make a difference for a lot of Virginians,” he said.
The affordability fund will be available for qualifying Virginians with a marketplace plan in 2027.
Patchett said the savings will be automatic during the regular application process. People who apply for coverage and financial assistance through the marketplace will be able to see how much help they qualify for while shopping for plans.
Open enrollment begins Nov. 1 and runs through Dec. 31.
