                                 CODE OF VIRGINIA

HEALTH INSURANCE EXCHANGE FUND; ASSESSMENT (§ 38.2-6510)

A. The Exchange shall be authorized to fund its operations through (i) special
fund revenues generated by assessment fees on health carriers offering plans
through the Exchange, (ii) funds described in subsection H, or (iii) such funds
as the General Assembly may from time to time appropriate. All such funds
received under this section and paid into the state treasury shall be deposited
to a special fund designated &#8220;Health Insurance Exchange Special Fund State
Corporation Commission.&#8221; Interest earned on moneys in the Fund shall
remain in the Fund and be credited to it. Any moneys remaining in the Fund,
including interest thereon, at the end of each fiscal year shall not revert to
the general fund but shall remain in the Fund. Moneys in the Fund shall be used
solely for the purposes of supporting the Exchange through initial start-up
costs associated with establishment of the Exchange, Exchange operations,
outreach, and enrollment, a Navigator program, and other means of supporting the
Exchange.

B. The Exchange shall have funding from the sources described in subsection A in
an amount sufficient to support its ongoing operations.

C. Assessments on health carriers shall be reasonable and necessary to support
the development, operations, and prudent cash management of the Exchange.
Assessments shall be approved by the Commission prior to implementation and
shall not exceed three percent of the carrier&#8217;s total monthly premium as
described in this subsection, except that the Commission may, after notice and
opportunity to be heard, adjust the assessment rate if necessary to ensure that
the Exchange is fully funded. The assessment shall be based on the premium
charged by a carrier for health benefits plans issued on the American Health
Benefits Exchange and each qualified dental plan offered on the American Health
Benefits Exchange during any period in which qualified health plans and
qualified dental plans are effective on the American Health Benefits Exchange.

D. Taxes, fees, or assessments used to finance the Exchange shall be clearly
disclosed by the Exchange as such.

E. Taxes, fees, or assessments used to finance the Exchange shall be considered
a state tax or assessment, as defined in &#xA7; 2718(a) of the PHSA and its
implementing regulations, and shall be excluded from health carrier
administrative costs for the purpose of calculating medical loss ratios or
rebates.

F. Assessments and fees shall not affect the requirement under &#xA7; 1301 of
the Federal Act that carriers charge the same premium rate for each qualified
health plan whether offered inside or outside the Exchange.

G. A written report on the implementation and performance of the Exchange
functions during the preceding fiscal year, including, at a minimum, the manner
in which funds were expended, shall be made available to the public on the
website of the Exchange.

H. The Exchange is authorized to apply for and accept federal grants, other
federal funds, and grants from nongovernmental organizations for the purposes of
developing, implementing, and administering the Exchange.

I. The Commission shall not use any special fund revenues dedicated to its other
functions and duties, including revenues from utility consumer taxes or fees
from licensees regulated by the Commission, or fees paid to the office of the
clerk of the Commission, to fund any of the activities or operating expenses of
the Exchange.

HISTORY: 2020, cc. 916, 917.