SENATE APPROVES BILL TO LIMIT PREMIUM INCREASES, RESTORE ACCESS TO HEALTH CARE

The following information was released by the Colorado Senate Democrats:

Written By Senate Democrats

Congress's inaction threatens health care coverage for 112,000 Coloradans, increases premiums by over 28 percent statewide

DENVER, CO Today the Senate approved a bill sponsored by Senators Kyle Mullica, D-Thornton, and Iman Jodeh, D-Aurora, 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 premium tax credits.

"Coloradans cannot afford these insurance premium hikes, so we are doing what needs to be done to keep costs down and protect coverage," said Mullica. "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."

"Coloradans in every corner of the state have struggled to make ends meet to pay for costly health care coverage," said Jodeh. "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."

If the federal enhanced premium tax credit is not extended by December 31, 2025, HB25B-1006makes 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 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.

HB25B-1006 helps 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 20 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 elseand providers struggle to stay afloat.