(HB1639)

GOVERNOR'S VETO

Pursuant to Article V, Section 6, of the Constitution of Virginia, I veto House Bill 1639, which would permanently prohibit small group and individual health insurance carriers from applying a surcharge on the insurance premiums of tobacco users.

Smoking and tobacco use remain among the leading causes of chronic health conditions, contributing to increased healthcare costs for all Virginians. The tobacco surcharge serves as a policy tool to ensure that those who engage in higher-risk behaviors contribute proportionally to their healthcare expenses, rather than shifting the financial burden onto non-tobacco users. Eliminating this surcharge would require insurers to redistribute these costs, potentially leading to higher premiums for non-smokers.

Furthermore, while proponents of this legislation argue that removing the surcharge would expand the insurance pool and reduce premiums, data from the State Corporation Commission has not conclusively demonstrated that eliminating the surcharge achieves these goals. The most recent reports indicate mixed enrollment trends and only marginal premium adjustments, suggesting that other economic and demographic factors play a more significant role in insurance participation than the surcharge itself.

Requiring non-tobacco users to bear the increased healthcare costs associated with tobacco use, without clear evidence of a broader benefit, is not a policy I can support.

Accordingly, I veto this bill.