Colorado lawmakers are pushing forward a plan that would let the Health Insurance Affordability Enterprise borrow $100 million and slap a one-time $40 million supplemental assessment on the state’s five largest insurers, a cost the industry is already signaling will land on consumers. The Senate Finance Committee signed off on the proposal on April 30 and sent it to Appropriations, putting potential 2027 premium hikes - possibly hundreds of dollars per family - squarely in play. Sponsors and administration officials are pitching the move as a stopgap to plug roughly a $140 million hole that threatens reinsurance, exchange subsidies and OmniSalud. Opponents counter that the fee could push costs high enough that some households walk away from coverage altogether.
What the bill would do
Senate Bill 26-178 would authorize the Health Insurance Affordability Enterprise to levy a one-time supplemental assessment and take out an interest-bearing $100 million loan from the Unclaimed Property Trust Fund, according to the Colorado General Assembly. The Senate Finance Committee adopted amendments on April 30 before referring the measure to Senate Appropriations for another round of scrutiny. Sponsors say the new authority is meant as a short-term bridge while they hunt for a longer-term funding solution for the enterprise.
Insurers say customers will pay
Industry groups warned lawmakers that the $40 million assessment will not come out of insurers’ pockets for long and will instead be baked into premiums paid by employers and individuals. As reported by CBS News Colorado, Kevin McFatridge of the Colorado Association of Health Plans told the committee that "this fee is going to be passed on to everyday Coloradans" and cautioned it could tack hundreds of dollars onto some families’ bills next year. Insurers also pointed to roughly $700 million they say they have already paid into the enterprise over the last six years as proof the industry is already heavily invested in keeping the program afloat.
Who would shoulder the assessment
The bill would divide the $40 million evenly among the state’s five largest carriers - Aetna, Anthem Blue Cross Blue Shield, Cigna, Kaiser Permanente and UnitedHealthcare - a simple split that would have very different per-member effects depending on each company’s Colorado footprint. Reporting from The Sum and Substance found that, under an even split, Aetna’s Colorado block could face about a $40.40 per-member per-month increase, or roughly $480 a year, while customers of larger carriers would see much smaller per-member bumps. Supporters argue the enterprise’s reinsurance and subsidy programs help hold premiums down across the state, particularly in high-cost mountain and rural regions.
Why lawmakers say they need to act
Sponsors say the enterprise is staring at about a $139 to $140 million shortfall for the 2027 plan year after shifts in federal subsidies, and warn that without a fix, reinsurance, exchange subsidies and OmniSalud could be put at risk. According to CBS News Colorado, the enterprise currently helps support coverage for roughly 176,000 people enrolled through Connect for Health Colorado and about 6,700 undocumented residents covered by OmniSalud. Backers say the bill is about preventing tens of thousands from losing coverage, while critics argue the same move would pile costs onto households already squeezed by rising rents and other everyday expenses.
Legal questions and next steps
Republican lawmakers and some legal experts warned that the supplemental assessment could run afoul of Colorado’s Taxpayer Bill of Rights, arguing that payors might not receive a direct, proportional benefit from the fee. Attorney Trey Rogers, who testified before the committee, said such a challenge could trigger litigation that puts the entire enterprise at risk, reporting shows, a concern highlighted by The Sum and Substance. The bill now heads to the Senate Appropriations Committee and would still need approval from both chambers before the legislature is scheduled to adjourn on May 13, per the Colorado General Assembly.
What Coloradans should watch
Consumers, small employers, and county enrollment offices will want to keep an eye on premium rate filings and notices from Connect for Health Colorado this summer and fall to see whether carriers decide to fold the new assessment into 2027 rates. Sponsors say passing the bill would buy time to craft a more durable funding plan. Opponents say lawmakers should find another way that does not risk pricing people out of health insurance. However it shakes out, the decision will help determine how affordable coverage is for thousands of Coloradans next year.
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