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Senate approves one‑time $100M package to blunt health insurance premium spike, funded in part by tax‑credit sales
Summary
Facing projected steep premium increases from changes in federal credits, the Senate passed House Bill 25B‑1006 to allocate $100 million to the Health Insurance Affordability Enterprise — up to $50M for reinsurance and up to $50M for subsidies — funded in part by sale of tax credits and other sources; the bill passed following extensive debate about long‑term fiscal tradeoffs.
The Senate adopted House Bill 25B‑1006 after extended floor debate that centered on preventing a “cliff” in affordability if enhanced premium tax credits are not extended at the federal level. Sponsors described the bill as a one‑time infusion: $100 million to the Health Insurance Affordability Enterprise cash fund, with up to $50 million allowed for reinsurance and up to $50 million for subsidies targeted to low‑income Coloradans.
Senator Judah said the bill was about mitigating catastrophic premium increases and preserving coverage. She cited county‑level projected average premium increases (for example, 175% statewide averages cited from filings in debate), warning of severe affordability consequences if Congress does not extend premium tax credits.
The bill’s funding package was amended on the floor and in committee to draw from the sale of tax credits (the mechanism in HB1004), other negotiated pools and a mix of sources; sponsors moved measures designed to limit market collision with affordable housing credits and to require Treasury and OSPB to coordinate scheduling and claims years.
Opponents objected to the funding mechanism (selling tax credits at a discount) as effectively borrowing and possibly worsening future budget positions. Several senators urged alternatives, such as pausing or reprioritizing existing tax credits or asking the governor to reallocate custodial funds. Amendments proposing increased accountability and program reporting to the Joint Budget Committee were debated; at least one accountability amendment (L18) failed on the floor.
After debate, the Senate adopted the bill as amended by committee reports and floor votes. Sponsors and several supporters urged continued federal action to extend premium tax credits nationally, saying the state action buys time and prevents immediate coverage loss.
