In a significant move to tackle the impending health care crisis in Colorado, the House has passed a bill that aims to mitigate the rising health insurance premiums and the potential loss of health insurance coverage for thousands of Coloradans. The bill, HB25B-1006, received bipartisan support in the House with a 40-22 vote in favor. The legislation emerged in response to rate hikes and coverage losses poised to hit the state due to the federal GOP tax bill.
"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," Rep. Kyle Brown, D-Louisville, told Colorado House Democrats. Rep. Lindsay Gilchrist, D-Denver, added, "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."
The bill aims to cushion the blow from the expected health insurance premium increases by investing up to $50M into a reinsurance program, which is designed to lower premiums by absorbing some of the costs for patients with expensive health care needs. As a result, the projected premium increases could be limited to a statewide average of 20 percent, a significant reduction from the looming 28 to 38 percent hikes expected before the legislation was introduced. Additionally, the bill provides resources to maintain the OmniSalud program, which extends affordable health insurance to Coloradans not eligible for Medicaid.
Another important feature of the bill is the attempt to increase transparency in health insurance pricing. It requires that the Health Insurance Affordability Enterprise (HIAE) Board publicly report key financial metrics annually, and it authorizes the State Auditor to conduct audits of the programs. "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," Speaker Julie McCluskie, D-Dillon, mentioned, as obtained by Colorado House Democrats.
Without federal intervention, the failure to extend the enhanced premium tax credits threatens to directly lead to 112,000 Coloradans losing coverage, according to Connect for Health Colorado. Through the HB25B-1006 legislation, budget provisions have been set to reduce the number of residents losing coverage by 20,000. This protective measure is also hoped to buffer the state against the ripple effects of increased uncompensated care, which typically translates to higher costs for all Coloradans and a strain on health care providers.
