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March 9, 2021


Legislation would allow small businesses that are growing to retain their small group health plans after exceeding the 100 employee cap for these plans

DENVER, CO– The House Health and Insurance Committee today unanimously passed SB21-090, bipartisan legislation sponsored by Representative Edie Hooton, which would allow small businesses that exceed the 100 employee cap on small group plans to retain their health insurance plans.

“Because of a glitch in our small business health insurance laws, some employers have to switch health insurance plans simply when they hire one more person,” said bill sponsor Rep. Edie Hooton, D-Boulder. “We should be making it easier for employers to hire, and that’s what this bill would do by allowing businesses to stay on their health insurance plans when they hire a few more people when they would otherwise be forced to purchase a new plan.”

Under SB21-090, small businesses participating in small group insurance plans may renew these plans even if they exceed the 100 employee cap on small business plans. This would allow a growing small business to hire new employees without risking the health insurance of all their employees.

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