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Congressional Republican tax bill threatens health care coverage for 112,000 Coloradans, increases premiums by over 28-percent statewide
DENVER, CO – The House Health & Human Services Committee today passed a bill sponsored by Representatives Kyle Brown and Lindsay Gilchrist to help blunt health insurance rate increases and significantly reduce the number of Coloradans who could lose their health insurance coverage due to the federal GOP tax bill.
“Republicans in Congress just passed the largest cut to Medicaid funding in American history and failed to extend tax credits that are essential for saving people money on health care, threatening health care coverage for over 100,000 Coloradans and drastically increasing the cost of premiums,” said Rep. Kyle Brown, D-Louisville. “Our bill would help stabilize the insurance market to blunt premium increases and protect 20,000 Coloradans’ access to coverage. Only Congress can prevent massive rate increases, and I urge them to act as soon as possible to stop this madness and preserve affordable health care options for all of our constituents.”
“While corporations get tax breaks, hardworking Coloradans will see their health care costs skyrocket,” said Rep. Lindsay Gilchrist, D-Denver. “This much-needed temporary fix will allow us to fight off some of the devastating impacts of the federal GOP budget while we work on a long-term solution that ensures health care is accessible to all Coloradans. When the GOP-led Congress failed to extend the enhanced premium tax credits, they not only threatened health care and increased costs for people on the individual market, but they raised costs for everyone, including small businesses and employers. Only Congress can fully stop these large price hikes from taking effect, but we are doing everything we can to limit cost increases and protect Coloradans.”
If the federal enhanced premium tax credit is not extended by December 31, 2025, HB25B-1006 would make changes to the Health Insurance Affordability Act by:
Loaning $100 million from the Unclaimed Property Trust Fund (UPTF) to the Health Insurance Affordability Cash Fund for the 2026 plan year,
Giving the Department of Insurance and the Health Insurance Affordability Enterprise (HIAE) Board the flexibility to use up to $5 million of the UPTF and up to $20 million of the residual HIAE reserves on HIAE programs,
Allowing the HIAE and the Commissioner of Insurance to make changes to the OmniSalud program to maximize the number of Coloradans who can receive insurance coverage, which lowers health insurance premiums for everyone, and
Increasing transparency by requiring the HIAE Board to annually report on certain financial metrics.
The bill would invest up to $50M to help the reinsurance program buy down premiums and cover the most expensive health care for patients. With Congressional Republicans choosing not to extend the enhanced premium tax credits for people who purchase health insurance through the Affordable Care Act marketplace, average statewide premiums are projected to increase by 28-percent. In the Eastern Plains, premiums are expected to rise more than 33-percent. The Western Slope will see premium increases of about 38-percent. This investment in reinsurance should keep premium increases to a statewide average of only 20-percent.
Connect for Health Colorado estimates that Congressional Republicans’ refusal to extend enhanced premium tax credits could lead to 112,000 Coloradans losing coverage. HB25B-1006 would invest up to $50 million in the premium wrap program to reduce the number of Coloradans who could lose their health insurance coverage by 20,000. Eighty-percent of individuals who get their coverage through this program can expect to see their premiums increase 175-percent.
OmniSalud reduces health care costs for all Coloradans by connecting Coloradans who are no longer eligible for Medicaid to affordable health insurance. Without this program, there would be an increase in uncompensated care that would increase insurance costs for all Coloradans and force health care providers to close. There are currently over 12,000 Coloradans insured for plan year 2025, and if no action is taken to combat the impacts from the Republican budget bill, nearly 10,000 people will lose their coverage in plan year 2026. When fewer people have health insurance, costs increase for everyone else, and providers struggle to stay afloat.
HB25B-1006 passed by a vote of 9-4.