Colorado Legislature Acts to Protect Health Care Coverage for 112,000 Residents

Strategic Insights -

The Colorado Senate Democrats have stated that a recent bill signed by Governor Jared Polis aims to counteract the effects of the federal Republican tax bill on health care coverage. The legislation aims to prevent the loss of coverage for 112,000 Coloradans and mitigate the increase in health insurance premiums by over 28% statewide. Key lawmakers emphasized the urgent need for action, citing the projected loss of coverage for hundreds of thousands of residents and the substantial increase in premiums across the state.

Key Takeaways:

  • The federal Republican tax bill is projected to increase health insurance premiums by over 28% statewide, with even higher increases expected in certain regions.
  • The Colorado legislature's HB25B-1006 aims to alleviate this issue by increasing funds in the Health Insurance Affordability Cash Fund to blunt premium increases.
  • The legislation will provide up to $110 million, plus administrative costs, for tax credit pre-sales and the Refinance Discretionary Account.
  • The law will also give the Department of Insurance and the Health Insurance Affordability Enterprise (HIAE) Board the flexibility to utilize their reserves to support the Enterprise's programs.
  • The bill will increase transparency by requiring the HIAE Board to annually report on certain financial metrics and authorizing the State Auditor to audit the programs.
  • HB25B-1006 will help the reinsurance program buy down premiums and cover the most expensive health care for patients.
  • Without this program, Coloradans would face an increase in uncompensated care, which would drive up insurance costs for everyone and force health care providers to close.
  • Over 12,000 Coloradans are currently insured through the OmniSalud program, and if no action is taken, nearly all of them will lose their coverage in plan year 2026.
  • Lawmakers emphasized that the legislation will not be sufficient to ensure coverage for 100,000 Coloradans at risk, and prompt federal action is necessary to address this issue.

Statistics:

  • Health insurance premiums are projected to increase by over 28% statewide as a result of the federal Republican tax bill.
  • The increase is expected to be higher in certain regions, such as the Eastern Plains (33%) and the Western Slope (38%).
  • Without action, nearly all of the 12,000 Coloradans currently insured through the OmniSalud program will lose their coverage in plan year 2026.
  • The reinsurance program, enabled by HB25B-1006, will help keep premium increases to a statewide average of only 20%.
  • The state of Colorado would need to cover up to $100 million in tax credit pre-sales through the Refinance Discretionary Account.

Sources:

  • Colorado Senate Democrats
  • HB25B-1006 (Colorado General Assembly)