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The House 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. HB25B-1006 passed by a vote of 40-22.
“This legislation will blunt Congressional Republicans’ nearly 30 percent increase in health care premium hikes and prevent 20,000 Coloradans from losing their health care coverage,” said Rep. Kyle Brown, D-Louisville. “If we don’t act now, Republicans’ failure to extend tax credits for people who purchase their health insurance will lead to over 100,000 Coloradans losing coverage next year and increased costs for businesses and families.”
“Only Congress can fully prevent 100,000 Coloradans from losing health care next year and stop these outrageous premium increases, but we are doing what we can for one year in Colorado to protect care for as many people as we can,” said Rep. Lindsay Gilchrist, D-Denver. “When people don’t have health insurance, they either aren’t able to see a doctor, or when they do, everyone else has to pay for that care. This drives up costs for everyone and leads to worse health outcomes. Congress must act now to prevent massive price hikes for health insurance.”
“The reinsurance program has saved Coloradans billions on health insurance, especially on the Western Slope where Congressional Republicans’ inaction will leave us facing nearly 40 percent increases in insurance premiums,” said Speaker Julie McCluskie, D-Dillon. “This bill will help us avoid even higher price hikes and preserve coverage for Coloradans who will lose access to health care if we do not act now. Congress has failed our state, and I urge Jeff Hurd, Gabe Evans and the Republicans in our delegation to act now to prevent 100,000 Coloradans from losing access to health care and to stop the 40 percent premium increases on the individual market that are coming next year as a result of their budget.”
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 Board 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 and authorizing the State Auditor to audit the programs.
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 is projected to 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 not 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 all of them 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.