20% or higher health insurance rate increases proposed in Virginia for 2026: SCC

RICHMOND, Va. (WRIC) -- Insurers planning to participate in Virginia's individual market next year are proposing average increases of 20% or higher, according to the State Corporation Commission (SCC).

According to a release from the commission on Friday, Aug. 8, the SCC announced that the public can view the proposed health insurance rates in Virginia's individual and small group markets for plan year 2026. As a result, of the 10 insurers planning to participate in the state's individual market next year, all have proposed 20% or higher rate increases from 2024.

These proposals come during growing concerns about healthcare in Virginia. In July, President Donald Trump signed the “big, beautiful bill” -- the core of Trump’s domestic policy agenda -- with experts warning that the bill could lead to rising health insurance premiums.

There is also a lack of primary care physicians across the Commonwealth -- a significant issue affecting the state. Previous Virginia Commonwealth University (VCU) research found that nearly 44% of Virginians — about 3.8 million people — have limited access to primary care services. Rural areas are particularly affected, despite an adequate number of physicians in notable cities, including Richmond.

The SCC also highlighted several factors driving the proposed premium increases, including rate changes, market uncertainty and the potential elimination of enhanced federal subsidies.

Many insurers are asking for an average increase of 11.2% for 2026, based on rising care costs, per the commission.

A slide presentation of insurance companies' proposed premium rates available to the public includes an overview of the proposed rate changes and their impact on health insurance products in individual and small group markets, effective Jan. 1, 2026.

The SCC also emphasized the role of the Health Reinsurance Program, established by the General Assembly, which has kept rates on average 15% or more below what rates would have been without the program two years prior in 2023, according to a release. The commission said the program is primarily funded through federal savings from reduced premium tax credits due to lower health insurance premiums.

The program is reportedly approved through plan year 2027.

The SCC's Bureau, which reviews and approves health insurance rates, is expected to complete its review of Qualified Health Plans for the 2026 plan year by Friday, Aug. 15.