Legislation to add tobacco use in insurers’ premium calculations clears both Virginia chambers

A bill put forward by State Sen. Jennifer D. Carroll Foy seeks to revise how health insurance premiums are calculated by including tobacco use as a limited rating factor and broadening insurer disclosure requirements, according to the Virginia State Senate.

The measure passed both chambers and was formally enrolled on Feb. 26, 2026, following an 85-13 vote in the House and a 38-0 vote in the Senate.

SB630 was introduced on Jan. 14, 2026, during the regular legislative session. The official summary, as filed by the legislature, describes it as: “Health insurance; tobacco surcharge.”

Below is our summary drawn from the actual bill text to provide clarification of the proposal’s key points.

This bill changes the rules for calculating premiums on individual and small group health plans in Virginia by permitting insurance carriers to set higher rates for tobacco users—capped at no more than 1.5 times the premium for non-tobacco users. Current rules on age and family composition remain, and insurers are still prevented from using extra rating factors. New requirements expand data disclosure, rate reporting, and trigger public hearings if certain thresholds are exceeded by area rates. The bill limits approval for rate filings when insurance prices for individual and small group markets show significant divergences due solely to underlying calculation methods. The new guidelines will apply to insurance contracts made, amended, extended, or renewed from Jan. 1, 2027.

During consideration in the House, the bill received support from 64 Democrats and 21 Republicans, while 13 Republicans voted against it.

For the Senate vote, 21 Democrats and 17 Republicans voted in support.

Sen. Jennifer D. Carroll Foy (Democrat-33rd District) was the bill’s sole sponsor.

Carroll Foy holds a BA from Virginia Military Institute (2003) and a JD from Thomas Jefferson School of Law (2010).

Elected in 2024, Carroll Foy represents Virginia’s 33rd Senate district, taking over from former Sen. Jennifer Boysko.

In Virginia, the legislative process starts when a bill is introduced in the House or Senate for referral to committee evaluation and possible changes. If approved, it moves on to floor debate and votes in both chambers. Bills adopted by legislators are sent to the governor, who may sign, veto, or let them become law without signature. The Virginia General Assembly’s regular session starts the second Monday in January each year, with hundreds of bills proposed but only a portion enacted.

Information in this article was obtained from the Virginia State Senate. The source data can be found here.