Virginia 2022 Regular Session

Virginia Senate Bill SB397

Introduced

1/11/22

Refer

1/11/22

Caption

Health insurance; association health plan for real estate salespersons.

Impact

One of the primary impacts of SB397 is the potential to improve health insurance accessibility for real estate salespersons, who often do not have the same coverage options as employees in larger companies. By leveraging group purchasing, it allows for more favorable premium rates and coverage options. However, the bill maintains compliance with existing health coverage mandates, such as those enacted under the Affordable Care Act, ensuring that all policies provided through these associations adhere to regulations regarding essential health benefits and coverage limits.

Summary

SB397 proposes the establishment of association health plans specifically targeted for real estate salespersons in Virginia. This bill allows associations formed by real estate professionals to offer health insurance to their members, thereby providing an alternative method for these professionals to obtain health coverage. The legislation aims to enhance access to affordable health insurance by allowing a collective pool of members which could lead to better premium rates based on group experiences rather than individual risk assessments. The bill lays out strict criteria that these associations must meet, ensuring that insurance policies are accessible and non-discriminatory based on individual health status or gender.

Contention

Despite the proposed benefits, SB397 has sparked debate among lawmakers and stakeholders. Proponents argue that the bill enables real estate professionals to have better health coverage options while potentially lowering costs through group purchasing. Critics express concerns about the quality of coverage provided through association plans compared to traditional insurance markets. There are also apprehensions regarding the ability of smaller associations to meet regulatory requirements and maintain financial sustainability in the long term.