Health Insurance Affordability Measures

      Sections 1 through 8 7 of the bill modify the 'Health Insurance Affordability Act' to:

• Authorize the Colorado health insurance affordability enterprise (enterprise) to impose a one-time supplemental assessment, allocated equally among health insurance companies that meet specified criteria;
• Authorize the health insurance affordability enterprise (enterprise), on or after January 1, 2027, to issue revenue bonds of up to $100 million to fund enterprise programs, secured by the enterprise's revenues, and require the enterprise to pay bond obligations before allocating revenues for enterprise programs;
• Allow the enterprise to invest specified money in the health insurance affordability cash fund (cash fund) without regard to otherwise applicable requirements for such investments and to contract with private professional fund managers to advise on investment strategies;
• Modify the allocation of enterprise revenue among authorized purposes and allow the enterprise to reallocate unexpended amounts for specified purposes;
• Direct the enterprise to require qualified individuals who are enrolled in state-subsidized individual health coverage plans eligible for subsidies from the enterprise to pay premiums established in rules adopted by the commissioner, in consultation with the health insurance affordability board (board);
• Require the enterprise to adjust the statewide average premium reduction under the reinsurance program to 18% and to reduce the amount of bonds issued to account for the reduced costs for the reinsurance program;

       

• Authorize a 25-year loan from the unclaimed property trust fund (trust fund) to the cash fund;
• Direct the state treasurer to transfer $40 million from the marijuana tax cash fund to the cash fund by June 30, 2026;
• Direct the health insurance affordability board, in recommending parameters for implementing subsidies for state-subsidized individual health coverage plans, to recommend coverage that prioritizes enrollment stability and customer predictability; when seeking input on its recommendations regarding plans, coverage, and the number of eligible slots, to enable feedback in at least English and Spanish and in other languages upon request; and to indicate how it incorporated such feedback into its final recommendations; and
• Direct the enterprise to conduct or contract a third party to conduct a study to evaluate the feasibility of restructuring the enterprise programs to increase health insurance affordability and maximize enrollment in health insurance plans ;
• Require the enterprise to submit 3 written reports and make one in-person presentation to the joint budget committee each year regarding the status of the cash fund and, as part of its in-person presentation in January 2027, to provide an analysis of the effects of changing the statewide average premium reduction under the reinsurance program to 15% and of creating a tiered, income-based, structure for premium assistance for individuals who purchase insurance on the Colorado health benefit exchange (exchange); and
• Establish a tax credit for contributions to the enterprise.

      Section 9 directs the state treasurer to enter into a loan agreement with the enterprise authorizing an interest-bearing loan of $100 million from the trust fund to the cash fund, with required full repayment of the loan no later than 25 years after the date of the loan.

      Sections 10 and 11 expand Section 8 repeals the tax credits for contributions to the Colorado health benefit exchange. (exchange) to also allow tax credits for contributions to the enterprise and, of the $9 million available for the tax credits, allocate $5 million to qualified taxpayers that make contributions to the exchange and $4 million to qualified taxpayers that make contributions to the enterprise.

      Sections 9 through 11 transfer $40 million from the marijuana tax cash fund to the cash fund, reduces to $60 million the designation of money in the marijuana tax cash fund as the state emergency reserve for the 2025-26 and 2026-27 state fiscal years, and increases by $40 million the value of the capitol annex building for purposes of the state emergency reserve for the 2025-26 and 2026-27 state fiscal years.

(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)


(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)