The bill H.430 proposes amendments to Vermont's health insurance regulations, specifically allowing health insurers to adjust premiums for individual and small group health insurance plans based on the age of beneficiaries and their tobacco usage. The current law prohibits demographic rating factors such as age and gender, but the new language permits registered carriers to vary premium rates based on age, with a maximum rate differential of 3 to 1, and based on tobacco usage, with a maximum rate differential of 1.5 to 1. Additionally, the Commissioner of Financial Regulation is tasked with establishing standards for these classifications while ensuring that premiums do not deviate from the community rate by more than 20 percent after applying age and tobacco ratings.

Furthermore, the bill allows carriers to implement incentives for health promotion and disease prevention, including rewards and premium discounts, while capping these incentives at 15 percent of the premium cost. The act is set to take effect on January 1, 2026. Overall, H.430 aims to provide more flexibility in premium pricing while maintaining a focus on affordability and accessibility in health insurance.

Statutes affected:
As Introduced: 33-1811