The Virginia Bureau of Insurance recently issued updated Wellness Benefits in Excepted Benefits Policies Guidance (the “guidance”) affecting excepted benefits policies covering Virginia residents. The guidance generally prohibits the inclusion of wellness-related benefits in excepted benefits policies, subject to exceptions, for policies marketed, sold, issued, or renewed in Virginia on or after July 1, 2025.
The guidance affects all employers offering this coverage to Virginia residents, but the compliance burden primarily falls on the insurance carriers issuing the policies. While it applies to policies renewed on or after July 1, 2025, many policies in effect before that date will qualify for long-term relief.
This Alert addresses: (i) the future restrictions on the inclusion of wellness benefits in affected excepted benefits policies issued in Virginia; and (ii) the effect this guidance may have on employers.
