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Failing to extend enhanced premium tax credits will dramatically increase health insurance costs for Coloradans
DENVER, CO - General Assembly Democrats today sent a letter to Colorado’s congressional delegation, calling on them to extend the enhanced premium tax credits that were omitted from the GOP Megabill to prevent Coloradans’ health insurance costs from skyrocketing.
In the letter, the General Assembly Democrats wrote:
We are writing to express our profound concern regarding Congress’s inaction on extending enhanced premium tax credits (tax credits) for individuals who purchase their health insurance from the healthcare marketplace. Failing to extend the tax credits Coloradans rely on to afford their health insurance will have devastating impacts. By not extending these tax credits, the GOP-led Congress is making a conscious choice to dramatically increase people’s health insurance costs. Enhanced premium tax credits play a vital role in ensuring Coloradans can access quality health insurance coverage, and we urge Congress to take action to ensure these tax credits are extended.
Failure to extend enhanced premium tax credits will result in harmful impacts to your constituents, including increased costs and loss of coverage. Enhanced premium tax credits must be extended in order to ensure stability and affordability for the Colorado insurance market. We urge you to take immediate action to extend enhanced premium tax credits to ensure Coloradans can continue to access the quality healthcare coverage that they deserve.
The full text of the letter is below:
Dear Senators and Representatives,
We are writing to express our profound concern regarding Congress’s inaction on extending enhanced premium tax credits (tax credits) for individuals who purchase their health insurance from the healthcare marketplace. Failing to extend the tax credits Coloradans rely on to afford their health insurance will have devastating impacts. By not extending these tax credits, the GOP-led Congress is making a conscious choice to dramatically increase people’s health insurance costs. Enhanced premium tax credits play a vital role in ensuring Coloradans can access quality health insurance coverage, and we urge Congress to take action to ensure these tax credits are extended.
We care deeply about making Colorado a more affordable place to live and work, and that means making sure that health care remains accessible and affordable for all Coloradans, in every part of our state. The existing tax credits help lower costs for hardworking Coloradans, and their removal would only stand to exacerbate the affordability challenges that so many in our state face. Over 321,000 Coloradans enrolled in healthcare through the public marketplace in 2025. If action is not taken to renew the tax credits, an estimated 110,000 Coloradans could lose healthcare coverage as early as next year.
It is not difficult to understand why so many people will lose coverage if Congress allows the tax credits to expire. The Colorado Division of Insurance estimates that the average statewide net premium increase for a silver plan will be nearly 200% for a middle class person. This will mean that the average net premium for a silver plan will increase by approximately $25,000.00 next year for a middle class family of four.
The situation is only slightly better for those earning lower than middle class incomes. Instead of a 200% premium increase, the Division estimates that they will on average receive a net premium increase of 174%.
Quite simply, Congress’ decision to allow these tax credits to expire is unconscionable and heartbreaking. Not only are these increases in premiums unsustainable for most people, they will also lead to more uncompensated care, which will be particularly challenging for our rural and safety net hospitals that are constantly struggling to keep their doors open. And, the costs of uncompensated care will be passed on to the employers in our state. No corner of our health care market will be safe from the decision to allow these tax credits to expire. Costs will increase for everyone, no matter the type of insurance they purchase. Extending the enhanced tax credits will ensure Coloradans can continue to afford quality healthcare coverage and can avoid having to make impossible decisions between healthcare coverage and other expenses.
Failure to extend the tax credits will also reduce the impact of Colorado's bipartisan reinsurance program by 40%, only increasing premiums further. From 2020-2025, Coloradans have saved $2.1 billion due to the reinsurance initiative. By not extending the tax credits, the reinsurance program will have less funds available to lower premiums for consumers, and will negatively impact those seeking healthcare coverage.
Failure to extend enhanced premium tax credits will result in harmful impacts to your constituents, including increased costs and loss of coverage. Enhanced premium tax credits must be extended in order to ensure stability and affordability for the Colorado insurance market. We urge you to take immediate action to extend enhanced premium tax credits to ensure Coloradans can continue to access the quality healthcare coverage that they deserve.
Sincerely,
Representative Julie McCluskie
Speaker of the Colorado House of Representatives
Senator James Coleman
President of the Senate
Representative Monica Duran
Majority Leader of the Colorado House of Representatives
Senator Judy Amabile
Joint Budget Committee Member
Senator Matt Ball
Senator Jeff Bridges
Joint Budget Committee Chair
Senator Lisa Cutter
Assistant Majority Leader
Senator Lindsey Daugherty
Senator Tony Exum
Senator Julie Gonzales
Senator Nick Hinrichsen
Majority Whip
Senator Cathy Kipp
Senator Iman Jodeh
Senator Chris Kolker
Senator Janice Marchman
Senator Dafna Michaelson Jenet
Senator Dylan Roberts
Majority Caucus Chair
Senator Marc Snyder
Senator Tom Sullivan
Senator Katie Wallace
Senator Mike Weissman
Senator Faith Winter
Representative Jennifer Bacon
Assistant Majority Leader
Representative Shannon Bird
Joint Budget Committee Vice-Chair
Representative Andy Boesenecker
Speaker Pro Tempore
Representative Kyle Brown
Representative Sean Camacho
Representative Michael Carter
Representative Chad Clifford
Representative Regina English
Representative Cecelia Espenoza
Representative Meg Froelich
Representative Lorena Garcia
Representative Lindsay Gilchrist
Representative Eliza Hamrick
Representative Jamie Jackson
Representative Junie Joseph
Majority Caucus Co-Chair
Representative Sheila Lieder
Representative Mandy Lindsay
Majority Caucus Co-Chair
Representative William Lindstedt
Representative Meghan Lukens
Representative Matthew Martinez
Majority Caucus Co-Whip
Representative Tisha Mauro
Representative Karen McCormick
Representative Amy Paschal
Representative Jacque Phillips
Representative Naquetta Ricks
Representative Manny Rutinel
Representative Gretchen Rydin
Representative Emily Sirota
Joint Budget Committee Member
Representative Lesley Smith
Representative Katie Stewart
Representative Rebekah Stewart
Representative Tammy Story
Representative Elizabeth Velasco
Majority Caucus Co-Whip
Representative Jenny Willford
Representative Steven Woodrow
Representative Yara Zokaie