Senators delay bill on making health insurance affordable

(The Center Square) - The Colorado Senate Appropriations Committee on Wednesday battled over a $140 million funding shortfall for the state’s subsidized health insurance program.

The meeting, which included a heated argument among lawmakers during a break, ultimately resulted in Senate Bill 26-178 being delayed to the committee's meeting on Thursday. The legislation includes changes to the state's Health Insurance Affordability Act.

The bill recently made headlines after a fee was proposed for health insurance companies to cover part of the cost. Proponents would like to collect a total of $40 million from the companies. The remaining $100 million would come from other sources.

The Senate committee initially agreed to instead draw a one-time $40 million sum from state reserves to keep insurance premiums down in the state after widespread pushback on raising premiums. Committee members across the political spectrum expressed concern about the Health Insurance Affordability Enterprise price tag and ultimately delayed the bill.

“Anytime you put a fee on the plans, that's what happens. It turns into an increase in premiums for those people who are on those plans,” Sen. Barbara Kirkmeyer, R-Larimer and Weld counties, told Wednesday’s Appropriations committee.

The argument against the fee on insurance companies in the state was that the cost would be put on Coloradans who pay for those health insurance plans. Coloradans pay an average of $535 monthly for low-cost Silver health insurance coverage, below the U.S. average of $611, according to the Kaiser Family Foundation.

The Health Insurance Affordability Enterprise, which the bill aims to keep afloat, subsidizes care for over 180,000 Coloradans, including roughly 6,700 illegal immigrants.

“We heard a lot of testimony in the finance committee as well, and we’re just trying to address some of the concerns that we heard during that process,” Sen. Kyle Mullica, D-Adams County and the bill's sponsor, told the Senate Appropriations Committee.

Some senators expressed concern that use of the reserve fund would thin out valuable marijauna tax funds currently used on mental health crisis response for children, which Mullica said would not be the case.

The shuffling of state funds comes amid a state budget crisis centered around a $1.5 billion shortfall. Colorado’s $46.8 billion 2026-2027 budget recently passed after several major cuts, most notably to the state’s Medicaid fund. Joint Budget Committee Chair Emily Sirota, who helped draft the budget, called its passage “pretty remarkable.”

With the tight budget, lawmakers have struggled more than usual to find available funds. Sen. Jeff Bridges, D-Arapoe, Denver and Jefferson counties, said the healthcare program was costing the state too much and would unlikely receive federal aid.

“No one seems to get that given the financial restraints we're in, given what the budget looks like, that we have to make cuts,” said Bridges. “This program will not be coming back. The federal government is not going to start subsidies again. It's not going to happen, guys. It's off the table, not with this president. Maybe in three years.”

SB26-178 ended in an argument among the committee’s members during a five-minute break. Concerns were expressed that the missing $140 million for the healthcare program would be taken from another part of the budget, with some members calling the nature of the meeting an ambush.

The heated funding debate is happening during the last seven days of the state’s legislative session. The session's final day is May 13.