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Bill

HB 405

Health Insurance Premium Stabilization Tax Credit Act; established, report.

2026 Regular Session Introduced by David Reid

Virginia would create a health insurance premium tax credit to help residents offset insurance costs, though the fiscal impact and eligibility criteria remain disputed among lawmakers.

Subcommittee recommends laying on the table (8-Y 2-N)
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Bill Summary · HB 405

Legislative bill overview

HB 405 would establish a health insurance premium stabilization tax credit in Virginia, creating a mechanism to help offset rising health insurance costs for eligible residents. The bill appears designed to provide direct tax relief tied to health insurance premium payments, though specific eligibility thresholds and credit amounts are not detailed in the available information.

Why is this important

Health insurance affordability remains a significant concern for Virginia households, with premiums rising faster than wage growth in many cases. A tax credit approach could reduce out-of-pocket healthcare costs for middle-income families who often struggle with premiums but don't qualify for federal subsidies, potentially improving insurance coverage rates.

Potential points of contention

  • Fiscal cost and funding source: The multiple fiscal impact statements suggest disagreement over the true budgetary burden; unclear whether the tax credit would be revenue-neutral or require general fund appropriations
  • Eligibility and targeting: Questions likely exist about income thresholds, family size adjustments, and whether the credit effectively reaches those most in need versus providing broader but shallower relief
  • Interaction with federal subsidies: Potential overlap or conflict with existing federal ACA tax credits and subsidy programs, creating administrative complexity or unintended benefit cliffs

Compiled from official sources — confirm details with the bill’s official record.

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