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Senate advances overhaul to extend coverage for uninsurable individuals; funding questions remain
Summary
Senate debate centered on Senate Bill 60, which would change how Utah’s HIP (high-risk) pool and private carriers cover people who cannot obtain individual insurance; sponsors said an initial $5 million fiscal note and cigarette-tax linked revenue would fund it, while some senators warned about long-term fiscal risk.
SALT LAKE CITY — Lawmakers debated Senate Bill 60 for more than an hour before sending the measure forward on the calendar, with supporters framing it as a practical fix to help people who cannot obtain coverage in the private individual insurance market.
The sponsor told the Senate the bill aligns Utah’s rules with recent federal small-group reforms and expands the HIP pool to cover uninsurable applicants referred by private carriers. A fiscal note discussed on the floor pegged initial funding at about $5 million and proposed ongoing support tied to cigarette-tax revenue.
“Once we established the criteria for eligibility … the fiscal note on the bill is $5,000,000,” the clerk recorded during debate as senators pressed for details on funding sources and program administration.
Senator Michael J. Petersen, who spoke in support of the measure, praised the committee work and broad negotiation that produced the draft. “I want to applaud … the committee and the efforts in this area that has been long underserved,” Petersen said on the floor, noting the bill revisits last year’s work to address remaining gaps.
Opponents and skeptical senators focused questions on whether the pool was large enough, whether rules and regulations were fully developed, and on the advisability of dedicating cigarette-tax revenue. Several senators urged caution about earmarking a non-growing revenue stream and recommended close monitoring should the bill move forward.
Senators also debated the role of private carriers. Sponsors said carriers would be required to accept a capped portion of high-risk individuals and that the HIP pool would provide certificates to allow certain applicants to access private-market coverage at rates no higher than the HIP pool, with a cap formula triggered as market capacity limits are reached.
While supporters described the bill as an important step toward broader coverage for the sickest residents, they acknowledged uncertainty about outcomes and signaled plans to monitor the program closely if the bill becomes law.
The Senate placed the bill on the calendar with recorded support reflected in the transcript; legislative staff will produce the formal fiscal note and detailed rulemaking information in the coming days.
