Virginia sees biggest health insurance price drop in the country

Premiums for marketplace health plans dropped more in Virginia than any other state last year.

What’s happening: The state, aided by federal grants, started covering a portion of insurers’ most expensive claims in a bid to lower prices.

• The 2021 policy change went into effect for the first time this enrollment period, which began Nov. 1 and ends on Jan. 15.

By the numbers: Virginia went from having the 20th most expensive average premiums in the country to having the fifth lowest, according to the Kaiser Family Foundation.

• The average monthly premium for a 40-year-old applicant on a silver plan dropped from $450 to $371, per the foundation.

Before the plan went into effect, insurance companies had been planning to increase rates by an average of 2%, according to the State Corporation Commission, which regulates the insurance industry.