{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/38.2-3432.2.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/38.2-3432.2.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/38.2-3432.2.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/38.2-3432.2.html"}],"law_id":85868,"edition_id":1,"section_id":85868,"structure_id":15009,"section_number":"38.2-3432.2","catch_line":"Availability","history":"1997, cc. 807, 913; 1998, c. 24; 2000, c. 544; 2013, c. 751.","full_text":"A\n\nIf coverage is offered under this article in the small employer market:1\n\nSuch coverage shall be offered and made available to all the eligible employees of every small employer and their dependents, including late enrollees, that apply for such coverage. No coverage may be offered only to certain eligible employees or their dependents and no employees or their dependents may be excluded or charged additional premiums because of health status; and2\n\nAll products that are approved for sale in the small group market that the health insurance issuer is actively marketing must be offered to all small employers, and the health insurance issuer must accept any employer that applies for any of those products. This subdivision shall not apply to health insurance coverage or products offered by a health insurance issuer if such coverage or product is made available in the small group market only through one or more bona fide associations.B\n\nNo coverage offered under this article shall exclude an employer based solely on the nature of the employer’s business.C\n\nA health insurance issuer that offers health insurance coverage in a small group market through a network plan may:1\n\nLimit the employers that may apply for such coverage to those eligible individuals who live, work or reside in the service area for such network plan; and2\n\nWithin the service area of such plan, deny such coverage to such employers if the health insurance issuer has demonstrated, if required, to the satisfaction of the Commission that:\n\t\t\t\ta. It will not have the capacity to deliver services adequately to enrollees of any additional groups because of its obligations to existing group contract holders and enrollees; and\n\t\t\t\tb. It is applying this subdivision uniformly to all employers without regard to the claims experience of those employers and their employees (and their dependents) or any health status-related factors relating to such employees and dependents.3\n\nA health insurance issuer upon denying health insurance coverage in any service area in accordance with subdivision D 1, may not offer coverage in the small group market within such service area for a period of 180 days after the date such coverage is denied.D\n\nA health insurance issuer may deny health insurance coverage in the small group market if the health insurance issuer has demonstrated, if required, to the satisfaction of the Commission that:1\n\nIt does not have the financial reserves necessary to underwrite additional coverage; and2\n\nIt is applying this subdivision uniformly to all employers in the small group market in the Commonwealth consistent with the laws of this Commonwealth and without regard to the claims experience of those employers and their employees (and their dependents) or any health status-related factor relating to such employees and dependents.E\n\nA health insurance issuer upon denying health insurance coverage in accordance with subsection D in the Commonwealth may not offer coverage in the small group market for a period of 180 days after the date such coverage is denied or until the health insurance issuer has demonstrated to the satisfaction of the Commission that the health insurance issuer has sufficient financial reserves to underwrite additional coverage, whichever is later.F\n\nNothing in this article shall be construed to preclude a health insurance issuer from establishing employer contribution rules or group participation rules in connection with a health benefit plan offered in the small group market. As used in this article, the term “employer contribution rule” means a requirement relating to the minimum level or amount of employer contribution toward the premium for enrollment of eligible individuals and the term “group participation rule” means a requirement relating to the minimum number of eligible employees that must be enrolled in relation to a specified percentage or number of eligible employees. Any employer contribution rule or group participation rule shall be applied uniformly among small employers without reference to the size of the small employer group, health status of the small employer group, or other factors.G\n\nThe provisions of this section shall not apply in any instance in which the provisions of this section are inconsistent or in conflict with a provision of Article 6 (§ 38.2-3438 et seq.) of Chapter 34.","order_by":null,"text":{"0":{"id":307504,"text":"If coverage is offered under this article in the small employer market:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":307505,"text":"Such coverage shall be offered and made available to all the eligible employees of every small employer and their dependents, including late enrollees, that apply for such coverage. No coverage may be offered only to certain eligible employees or their dependents and no employees or their dependents may be excluded or charged additional premiums because of health status; and","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":307506,"text":"All products that are approved for sale in the small group market that the health insurance issuer is actively marketing must be offered to all small employers, and the health insurance issuer must accept any employer that applies for any of those products. This subdivision shall not apply to health insurance coverage or products offered by a health insurance issuer if such coverage or product is made available in the small group market only through one or more bona fide associations.","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"B"},"3":{"id":307507,"text":"No coverage offered under this article shall exclude an employer based solely on the nature of the employer’s business.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A2","next_prefix":"C"},"4":{"id":307508,"text":"A health insurance issuer that offers health insurance coverage in a small group market through a network plan may:","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"C1"},"5":{"id":307509,"text":"Limit the employers that may apply for such coverage to those eligible individuals who live, work or reside in the service area for such network plan; and","type":"section","prefixes":["C","1"],"prefix":"1","entire_prefix":"C1","prefix_anchor":"C1","level":2,"prior_prefix":"C","next_prefix":"C2"},"6":{"id":307510,"text":"Within the service area of such plan, deny such coverage to such employers if the health insurance issuer has demonstrated, if required, to the satisfaction of the Commission that:\n\t\t\t\ta. It will not have the capacity to deliver services adequately to enrollees of any additional groups because of its obligations to existing group contract holders and enrollees; and\n\t\t\t\tb. It is applying this subdivision uniformly to all employers without regard to the claims experience of those employers and their employees (and their dependents) or any health status-related factors relating to such employees and dependents.","type":"section","prefixes":["C","2"],"prefix":"2","entire_prefix":"C2","prefix_anchor":"C2","level":2,"prior_prefix":"C1","next_prefix":"C3"},"7":{"id":307511,"text":"A health insurance issuer upon denying health insurance coverage in any service area in accordance with subdivision D 1, may not offer coverage in the small group market within such service area for a period of 180 days after the date such coverage is denied.","type":"section","prefixes":["C","3"],"prefix":"3","entire_prefix":"C3","prefix_anchor":"C3","level":2,"prior_prefix":"C2","next_prefix":"D"},"8":{"id":307512,"text":"A health insurance issuer may deny health insurance coverage in the small group market if the health insurance issuer has demonstrated, if required, to the satisfaction of the Commission that:","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C3","next_prefix":"D1"},"9":{"id":307513,"text":"It does not have the financial reserves necessary to underwrite additional coverage; and","type":"section","prefixes":["D","1"],"prefix":"1","entire_prefix":"D1","prefix_anchor":"D1","level":2,"prior_prefix":"D","next_prefix":"D2"},"10":{"id":307514,"text":"It is applying this subdivision uniformly to all employers in the small group market in the Commonwealth consistent with the laws of this Commonwealth and without regard to the claims experience of those employers and their employees (and their dependents) or any health status-related factor relating to such employees and dependents.","type":"section","prefixes":["D","2"],"prefix":"2","entire_prefix":"D2","prefix_anchor":"D2","level":2,"prior_prefix":"D1","next_prefix":"E"},"11":{"id":307515,"text":"A health insurance issuer upon denying health insurance coverage in accordance with subsection D in the Commonwealth may not offer coverage in the small group market for a period of 180 days after the date such coverage is denied or until the health insurance issuer has demonstrated to the satisfaction of the Commission that the health insurance issuer has sufficient financial reserves to underwrite additional coverage, whichever is later.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D2","next_prefix":"F"},"12":{"id":307516,"text":"Nothing in this article shall be construed to preclude a health insurance issuer from establishing employer contribution rules or group participation rules in connection with a health benefit plan offered in the small group market. As used in this article, the term “employer contribution rule” means a requirement relating to the minimum level or amount of employer contribution toward the premium for enrollment of eligible individuals and the term “group participation rule” means a requirement relating to the minimum number of eligible employees that must be enrolled in relation to a specified percentage or number of eligible employees. Any employer contribution rule or group participation rule shall be applied uniformly among small employers without reference to the size of the small employer group, health status of the small employer group, or other factors.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E","next_prefix":"G"},"13":{"id":307517,"text":"The provisions of this section shall not apply in any instance in which the provisions of this section are inconsistent or in conflict with a provision of Article 6 (§ 38.2-3438 et seq.) of Chapter 34.","type":"section","prefixes":["G"],"prefix":"G","entire_prefix":"G","prefix_anchor":"G","level":1,"prior_prefix":"F"}},"ancestry":[{"id":15009,"edition_id":1,"name":"Group Market Reforms and Individual Coverage Offered to Employees of Small Employers","identifier":"5","label":"article","depth":3,"order_by":1,"parent_id":12993,"metadata":{},"date_created":"2026-06-26 03:51:28","date_modified":"2026-06-26 03:51:28","permalink":{"id":215415,"object_type":"structure","relational_id":15009,"identifier":"5","token":"38.2\/34\/5","url":"\/38.2\/34\/5\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12993,"edition_id":1,"name":"Provisions Relating to Accident and Sickness Insurance","identifier":"34","label":"chapter","depth":2,"order_by":1,"parent_id":12698,"metadata":{},"date_created":"2026-06-26 03:44:07","date_modified":"2026-06-26 03:44:07","permalink":{"id":214887,"object_type":"structure","relational_id":12993,"identifier":"34","token":"38.2\/34","url":"\/38.2\/34\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12698,"edition_id":1,"name":"Insurance","identifier":"38.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":210661,"object_type":"structure","relational_id":12698,"identifier":"38.2","token":"38.2","url":"\/38.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":86404,"structure_id":15009,"section_number":"38.2-3431","catch_line":"Application of article; definitions","url":"\/38.2-3431\/","token":"38.2\/34\/5\/38.2-3431","metadata":false},{"id":83361,"structure_id":15009,"section_number":"38.2-3432","catch_line":"Repealed","url":"\/38.2-3432\/","token":"38.2\/34\/5\/38.2-3432","metadata":false},{"id":79618,"structure_id":15009,"section_number":"38.2-3432.1","catch_line":"Renewability","url":"\/38.2-3432.1\/","token":"38.2\/34\/5\/38.2-3432.1","metadata":false},{"id":85868,"structure_id":15009,"section_number":"38.2-3432.2","catch_line":"Availability","url":"\/38.2-3432.2\/","token":"38.2\/34\/5\/38.2-3432.2","metadata":false},{"id":63783,"structure_id":15009,"section_number":"38.2-3432.3","catch_line":"Limitation on preexisting condition exclusion period","url":"\/38.2-3432.3\/","token":"38.2\/34\/5\/38.2-3432.3","metadata":false},{"id":64415,"structure_id":15009,"section_number":"38.2-3433","catch_line":"Repealed","url":"\/38.2-3433\/","token":"38.2\/34\/5\/38.2-3433","metadata":false},{"id":57232,"structure_id":15009,"section_number":"38.2-3434","catch_line":"Disclosure of information","url":"\/38.2-3434\/","token":"38.2\/34\/5\/38.2-3434","metadata":false},{"id":74752,"structure_id":15009,"section_number":"38.2-3435","catch_line":"Exclusions","url":"\/38.2-3435\/","token":"38.2\/34\/5\/38.2-3435","metadata":false},{"id":77749,"structure_id":15009,"section_number":"38.2-3436","catch_line":"Eligibility to enroll","url":"\/38.2-3436\/","token":"38.2\/34\/5\/38.2-3436","metadata":false},{"id":70799,"structure_id":15009,"section_number":"38.2-3437","catch_line":"Rules used to determine group size","url":"\/38.2-3437\/","token":"38.2\/34\/5\/38.2-3437","metadata":false}],"previous_section":{"id":79618,"structure_id":15009,"section_number":"38.2-3432.1","catch_line":"Renewability","url":"\/38.2-3432.1\/","token":"38.2\/34\/5\/38.2-3432.1","metadata":false},"next_section":{"id":63783,"structure_id":15009,"section_number":"38.2-3432.3","catch_line":"Limitation on preexisting condition exclusion period","url":"\/38.2-3432.3\/","token":"38.2\/34\/5\/38.2-3432.3","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/38.2-3432.2\/","history_text":"

This law was first created in 1997. The record of its establishment is cataloged in chapters 807<\/a> and 913<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 3 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1998, chapter 24<\/a>; in 2000, chapter 544<\/a>; in 2013, chapter 751<\/a>.<\/p>","references":[{"id":64087,"section_number":"38.2-3420","catch_line":"Authority and jurisdiction of Commission; exception","order_by":null,"url":"\/38.2-3420\/"},{"id":66501,"section_number":"38.2-3447","catch_line":"(Effective January 1, 2026) Restrictions relating to premium rates","order_by":null,"url":"\/38.2-3447\/"}],"refers_to":[{"id":57210,"section_number":"38.2-3438","catch_line":"Definitions","order_by":null,"url":"\/38.2-3438\/"}],"permalink":{"id":215429,"object_type":"law","relational_id":85868,"identifier":"38.2-3432.2","token":"38.2\/34\/5\/38.2-3432.2","url":"\/38.2-3432.2\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/38.2-3432.2\/","token":"38.2\/34\/5\/38.2-3432.2","dublin_core":{"Title":"Availability","Type":"Text","Format":"text\/html","Identifier":"\u00a7 38.2-3432.2","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> If coverage is offered under this article in the small employer market: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Such coverage shall be offered and made available to all the eligible employees of every small employer and their dependents, including late enrollees, that apply for such coverage. No coverage may be offered only to certain eligible employees or their dependents and no employees or their dependents may be excluded or charged additional premiums because of health status; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> All products that are approved for sale in the small group market that the health insurance<\/span> issuer is actively marketing must be offered to all small employers, and the health insurance<\/span> issuer must accept any employer that applies for any of those products. This subdivision shall not apply to health insurance<\/span> coverage or products offered by a health insurance<\/span> issuer if such coverage or product is made available in the small group market only through one or more bona fide associations. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> No coverage offered under this article shall exclude an employer based solely on the nature of the employer’s business. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> A health insurance<\/span> issuer that offers health insurance<\/span> coverage in a small group market through a network plan may: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Limit the employers that may apply for such coverage to those eligible individuals who live, work or reside in the service area for such network plan; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Within the service area of such plan, deny such coverage to such employers if the health insurance<\/span> issuer has demonstrated, if required, to the satisfaction of the Commission<\/span> that:\n\t\t\t\ta. It will not have the capacity to deliver services adequately to enrollees of any additional groups because of its obligations to existing group contract<\/span> holders and enrollees; and\n\t\t\t\tb. It is applying this subdivision uniformly to all employers without regard to the claims experience of those employers and their employees (and their dependents) or any health status-related factors relating to such employees and dependents. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> A health insurance<\/span> issuer upon denying health insurance<\/span> coverage in any service area in accordance with subdivision D 1, may not offer coverage in the small group market within such service area for a period of 180 days after the date such coverage is denied. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> A health insurance<\/span> issuer may deny health insurance<\/span> coverage in the small group market if the health insurance<\/span> issuer has demonstrated, if required, to the satisfaction of the Commission<\/span> that: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> It does not have the financial reserves necessary to underwrite additional coverage; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> It is applying this subdivision uniformly to all employers in the small group market in the Commonwealth consistent with the laws<\/span> of this Commonwealth and without regard to the claims experience of those employers and their employees (and their dependents) or any health status-related factor relating to such employees and dependents. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> A health insurance<\/span> issuer upon denying health insurance<\/span> coverage in accordance with subsection D in the Commonwealth may not offer coverage in the small group market for a period of 180 days after the date such coverage is denied or until the health insurance<\/span> issuer has demonstrated to the satisfaction of the Commission<\/span> that the health insurance<\/span> issuer has sufficient financial reserves to underwrite additional coverage, whichever is later. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> Nothing in this article shall be construed to preclude a health insurance<\/span> issuer from establishing employer contribution rules<\/span> or group participation rules<\/span> in connection with a health benefit plan offered in the small group market. As used in this article, the term “employer contribution rule<\/span>” means a requirement relating to the minimum level or amount of employer contribution toward the premium for enrollment of eligible individuals and the term “group participation rule<\/span>” means a requirement relating to the minimum number of eligible employees that must be enrolled in relation to a specified percentage or number of eligible employees. Any employer contribution rule<\/span> or group participation rule<\/span> shall be applied uniformly among small employers without reference to the size of the small employer group, health status of the small employer group, or other factors. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

G.<\/span> The provisions of this section shall not apply in any instance in which the provisions of this section are inconsistent or in conflict with a provision of Article 6 (§ 38.2-3438<\/a> et seq.) of Chapter 34. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nAVAILABILITY (\u00a7 38.2-3432.2)\n\nA. If coverage is offered under this article in the small employer market:\n\n 1. Such coverage shall be offered and made available to all the eligible\n employees of every small employer and their dependents, including late\n enrollees, that apply for such coverage. No coverage may be offered only to\n certain eligible employees or their dependents and no employees or their\n dependents may be excluded or charged additional premiums because of health\n status; and\n\n 2. All products that are approved for sale in the small group market that the\n health insurance issuer is actively marketing must be offered to all small\n employers, and the health insurance issuer must accept any employer that\n applies for any of those products. This subdivision shall not apply to health\n insurance coverage or products offered by a health insurance issuer if such\n coverage or product is made available in the small group market only through\n one or more bona fide associations.\n\nB. No coverage offered under this article shall exclude an employer based solely\non the nature of the employer’s business.\n\nC. A health insurance issuer that offers health insurance coverage in a small\ngroup market through a network plan may:\n\n 1. Limit the employers that may apply for such coverage to those eligible\n individuals who live, work or reside in the service area for such network\n plan; and\n\n 2. Within the service area of such plan, deny such coverage to such employers\n if the health insurance issuer has demonstrated, if required, to the\n satisfaction of the Commission that:\n \t\t\t\ta. It will not have the capacity to deliver services adequately to\n enrollees of any additional groups because of its obligations to existing\n group contract holders and enrollees; and\n \t\t\t\tb. It is applying this subdivision uniformly to all employers without\n regard to the claims experience of those employers and their employees (and\n their dependents) or any health status-related factors relating to such\n employees and dependents.\n\n 3. A health insurance issuer upon denying health insurance coverage in any\n service area in accordance with subdivision D 1, may not offer coverage in the\n small group market within such service area for a period of 180 days after the\n date such coverage is denied.\n\nD. A health insurance issuer may deny health insurance coverage in the small\ngroup market if the health insurance issuer has demonstrated, if required, to\nthe satisfaction of the Commission that:\n\n 1. It does not have the financial reserves necessary to underwrite additional\n coverage; and\n\n 2. It is applying this subdivision uniformly to all employers in the small\n group market in the Commonwealth consistent with the laws of this Commonwealth\n and without regard to the claims experience of those employers and their\n employees (and their dependents) or any health status-related factor relating\n to such employees and dependents.\n\nE. A health insurance issuer upon denying health insurance coverage in\naccordance with subsection D in the Commonwealth may not offer coverage in the\nsmall group market for a period of 180 days after the date such coverage is\ndenied or until the health insurance issuer has demonstrated to the satisfaction\nof the Commission that the health insurance issuer has sufficient financial\nreserves to underwrite additional coverage, whichever is later.\n\nF. Nothing in this article shall be construed to preclude a health insurance\nissuer from establishing employer contribution rules or group participation\nrules in connection with a health benefit plan offered in the small group\nmarket. As used in this article, the term “employer contribution\nrule” means a requirement relating to the minimum level or amount of\nemployer contribution toward the premium for enrollment of eligible individuals\nand the term “group participation rule” means a requirement relating\nto the minimum number of eligible employees that must be enrolled in relation to\na specified percentage or number of eligible employees. Any employer\ncontribution rule or group participation rule shall be applied uniformly among\nsmall employers without reference to the size of the small employer group,\nhealth status of the small employer group, or other factors.\n\nG. The provisions of this section shall not apply in any instance in which the\nprovisions of this section are inconsistent or in conflict with a provision of\nArticle 6 (§ 38.2-3438 et seq.) of Chapter 34.\n\nHISTORY: 1997, cc. 807, 913; 1998, c. 24; 2000, c. 544; 2013, c. 751.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}