Health Insurers Seek Approval for 13.6% Rate Hike Amid Subsidy Concerns in Colorado

The Senate Finance Committee of the Colorado State Legislature convened on August 24, 2025, to discuss critical issues surrounding health insurance affordability and proposed amendments to House Bill 1006. The meeting began with a focus on the potential expiration of enhanced premium subsidies, which health systems and insurers have been anticipating. These subsidies are vital for maintaining affordable health insurance, particularly for marginalized populations. Denver Health representatives emphasized the urgency of the situation, noting that the passage of HR 1 could significantly impact their operations and the coverage of their patients.

The discussion highlighted that health insurers in Colorado have requested an average rate increase of 13.6% for the 2026 plan year, underscoring the need for a robust state health insurance affordability enterprise. Denver Health expressed its commitment to remaining engaged as a stakeholder in future discussions, while also acknowledging that the current solutions may only serve as temporary measures if Congress does not extend the premium subsidies.

Following the testimony phase, the committee moved to the amendments phase, where Senator Mullica introduced Amendment L 15 to House Bill 1006. This amendment proposes a shift in the funding source from the unclaimed property trust fund to $100 million in tax credit sales, along with an additional $10 million discussed earlier. The amendment aims to establish a floor rate of 80% for these tax credits, addressing concerns raised about affordability in various tax credit programs.

Senator Mullica assured the committee that ongoing discussions with the bill drafter would address any additional concerns regarding the language of the bill. The committee members were invited to ask questions about the amendment, indicating a collaborative approach to refining the proposed legislation.

In conclusion, the meeting underscored the pressing need for solutions to health insurance affordability in Colorado, with significant implications for both health systems and residents. The committee's discussions and proposed amendments reflect a proactive stance in addressing these challenges, with further deliberations expected as the legislative process continues.