BILL TO LIMIT PREMIUM INCREASES, RESTORE ACCESS TO HEALTH CARE BECOMES LAW

The following information was released by the Colorado Senate Democrats:

Written By Senate Democrats

Congressional Republican tax bill threatens health care coverage for 112,000 Coloradans, increases premiums by over 28-percent statewide

DENVER, CO Governor Jared Polis on Thursday signed a bill into law to help blunt health insurance rate increases and significantly reduce the number of Coloradans who could lose their health insurance coverage due to Congress's refusal to extend the enhanced premium tax credits.

"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."

"Coloradans cannot afford these insurance premium hikes, so we are doing what needs to be done to keep costs down and protect coverage," said Senator Kyle Mullica, D-Thornton. "Skyrocketing premiums mean that hundreds of thousands of Coloradans will be forced to spend more of their paycheck on essential health care, and many will lose their coverage altogether. We can't wait. We must act now to shield families from these unaffordable premium increases and keep Coloradans insured."

"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 possible," 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."

"Coloradans in every corner of the state have struggled to make ends meet to pay for costly health care coverage," said Senator Iman Jodeh, D-Aurora. "Due to Congressional Republicans' failure to extend premium tax credits that help keep insurance premiums affordable, tens of thousands of lives are at stake. We simply cannot gamble with life-saving health care coverage. That's why we're taking action and doing everything we can this year to protect Coloradans' care."

"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 law 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 will make changes to the Health Insurance Affordability Act by:

Boosting funds in the Health Insurance Affordability Cash Fund to blunt serious increases in insurance premiums and protect coverage. Funding sources would include up to $110 million, plus administrative costs, from a combination of tax credit pre-sales and the Refinance Discretionary Account. The State Treasurer would manage the tax credit pre-sales; should they not raise $100 million in revenue, the General Fund Reserve would serve as a backstop,

Giving the Department of Insurance and the Health Insurance Affordability Enterprise (HIAE) Board the flexibility to utilize their reserves to support the Enterprise's 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.

HB25B-1006 helps the reinsurance program buy down premiums and cover the most expensive health care for patients. With Congressional Republicans' failure 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.

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.