SB 20-215

  • Colorado Senate Bill
  • 2020 Regular Session
  • Introduced in Senate Jun 09, 2020
  • Passed Senate Jun 09, 2020
  • Passed House Jun 13, 2020
  • Signed by Governor Jun 30, 2020

Health Insurance Affordability Enterprise

Abstract

The act establishes the health insurance affordability enterprise, for purposes of section 20 of article X of the state constitution, that is authorized to assess a health insurance affordability fee (insurer fee) on certain health insurers and a special assessment (hospital assessment) on hospitals in order to: Provide business services to carriers that pay the insurer fee, including services to increase enrollment in health benefit plans offered by carriers across the state; increase the number of individuals who are able to purchase health benefit plans in the individual market by providing financial support for certain qualifying individuals; fund the reinsurance program that offsets the costs carriers would otherwise pay for covering consumers with high medical costs; improve the stability of the market throughout the state by providing consistent private health care coverage and reducing the movement of individuals from insured to uninsured status; reduce provider cost shifting from the individual market and the uninsured to the group market; and create a healthier risk pool for all carriers by establishing a path for consistent coverage for individuals; and Provide business services to hospitals, including by reducing the amount of uncompensated care provided by hospitals; reducing the need of providers to shift costs of providing uncompensated care to other payers; and expanding access to high-quality, affordable health care for low-income and uninsured residents. The enterprise is to start assessing and collecting the insurer fee in 2021, which fee is based on a percentage of premiums collected by health insurers in the previous calendar year on health benefit plans issued in the state. The hospital assessment is a specified amount assessed and collected in the 2022 and 2023 calendar years. Money collected from the insurer fee and hospital assessment is to be deposited in the health insurance affordability cash fund (fund), which the act creates. The act also transfers an amount of premium taxes collected by the state in 2020 or later years that exceeds the amount collected in 2019, but not more than 10% of the enterprise's revenues, to the fund. The enterprise is required to use the insurer fee, the hospital assessment, and any premium tax revenues or other money available in the fund, in accordance with the allocation specified in the act, for the following purposes: To provide funding for the Colorado reinsurance program; To provide payments to carriers to increase the affordability of health insurance on the individual market for Coloradans who receive the premium tax credit available under federal law; To provide subsidies for state-subsidized individual health coverage plans purchased by qualified low-income individuals who are not eligible for the premium tax credit or public assistance health care programs; To pay the actual administrative costs of the enterprise and the division of insurance for implementing and administering the act, limited to 3% of the enterprise's revenues; and To pay the costs for consumer enrollment, outreach, and education activities regarding health care coverage. The enterprise is governed by an 11-member board composed of the executive director of the Colorado health benefit exchange and the commissioner of insurance or their designees and 9 members appointed by the governor and representing various aspect of the health care industry and health care consumers. With regard to the Colorado reinsurance program and enterprise, the act: Incorporates the reinsurance program enterprise within the health insurance affordability enterprise; Eliminates funding for the reinsurance program from special assessments on hospitals and health insurers, excess premium tax revenues, and specified transfers from the state general fund and instead allocates a portion of the health insurance affordability enterprise revenues to the reinsurance program annually; and Extends the reinsurance program, subject to federal approval of a new or extended state innovation waiver to enable the state to operate the reinsurance program and access federal funding for the program.(Note: This summary applies to this bill as enacted.)

Bill Sponsors (4)

Votes


Actions


Jun 30, 2020

Office of the Governor

Governor Signed

Jun 22, 2020

Office of the Governor

Sent to the Governor

House

Signed by the Speaker of the House

Jun 19, 2020

Senate

Signed by the President of the Senate

Jun 15, 2020

Senate

Senate Considered House Amendments - Result was to Concur - Repass

Jun 13, 2020

House

House Third Reading Passed with Amendments - Floor

Jun 12, 2020

House

House Second Reading Special Order - Passed with Amendments - Floor

Jun 11, 2020

House

House Second Reading Special Order - Laid Over Daily - No Amendments

House

House Committee on Appropriations Refer Unamended to House Committee of the Whole

  • Referral-Committee
  • Committee-Passage
House Committee of the Whole Appropriations

Jun 10, 2020

House

House Committee on Finance Refer Unamended to Appropriations

  • Referral-Committee
Finance Appropriations

Jun 09, 2020

House

Introduced In House - Assigned to Finance + Appropriations

  • Introduction
Finance Appropriations

Senate

Senate Third Reading Passed - No Amendments

Jun 08, 2020

Senate

Senate Second Reading Special Order - Passed with Amendments - Floor

Jun 06, 2020

Senate

Senate Committee on Appropriations Refer Unamended to Senate Committee of the Whole

  • Referral-Committee
  • Committee-Passage
Appropriations Senate Committee of the Whole

Jun 03, 2020

Senate

Senate Committee on Finance Refer Unamended to Appropriations

  • Referral-Committee
Finance Appropriations

Jun 02, 2020

Senate

Introduced In Senate - Assigned to Finance

  • Introduction
Finance

Bill Text

Bill Text Versions Format
Signed Act (06/30/2020) PDF
Final Act (06/22/2020) PDF
Rerevised (06/13/2020) PDF
Revised (06/12/2020) PDF
Reengrossed (06/09/2020) PDF
Engrossed (06/08/2020) PDF
Introduced (06/02/2020) PDF
Committee Amendment PDF

Related Documents

Document Format
Fiscal Note SA1 (06/06/2020) PDF
Fiscal Note SA2 (06/11/2020) PDF
Fiscal Note FN1 (06/03/2020) PDF
Fiscal Note FN2 (06/04/2020) PDF
Fiscal Note FN3 (06/05/2020) PDF
Fiscal Note FN4 (06/12/2020) PDF

Sources

Data on Open States is updated nightly from the official website of the Colorado General Assembly.

If you notice any inconsistencies with these official sources, feel free to file an issue.