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House panel advances bill to shore up reinsurance and OmniSalud funding amid federal uncertainty
Summary
Sponsors told the House Health & Human Services Committee that House Bill 12-97 would let Colorado raise an insurer assessment and accept donations to sustain the Health Insurance Affordability Enterprise (HIAE) if federal enhanced subsidies lapse. Proponents cited coverage protections; business groups warned of higher costs for employers and employees. The committee adopted amendments and moved the bill to Finance.
Representative Meg Brown introduced House Bill 12-97 to strengthen Colorado's Health Insurance Affordability Enterprise (HIAE), saying the measure is designed to "increase funding and long term stability for both the reinsurance program as well as the health insurance affordability enterprise as a whole." The sponsors said the changes would let the state raise the insurer assessment by up to 1 percentage point (capped), allow HIAE to accept gifts and grants, and expand allowable uses to sustain programs such as the state reinsurance program and the OmniSalud plan for low-income residents who do not qualify for federal subsidies.
Why it matters: Sponsors and supporters warned that enhanced federal subsidies introduced in 2021 are uncertain after 2025 and that a lapse could leave more than 60,000 Coloradans uninsured and create a funding shortfall for state affordability programs. Representative Brown told the committee the reinsurance program "reduces health insurance premiums by an average of 20% statewide and up to 35% in rural Colorado," and that the enterprise supports nearly 300,000 Coloradans on individual policies as well as about 12,000 OmniSalud enrollees and roughly 40,000 people receiving enhanced cost-sharing reductions.
Supporters and witness testimony: Consumer advocates and local officials urged the committee to protect the programs. Isabel Cruz, policy director for the Colorado Consumer Health Initiative, said "There is an urgent need to safeguard Colorado's affordability programs from federal actions that could undermine health coverage," and asked the committee to adopt amendments to protect low- and middle-income enrollees. County officials, rural health networks and immigrant-rights groups described OmniSalud as critical to access in mountain and border communities.
Opposition and concerns: Business groups and chambers of commerce said the measure would increase costs for fully insured employers and their workers. Michael Smith of NFIB and Rachel Beck of the Colorado Competitive Council warned the fee would be borne by small businesses and the roughly 1.2 million Coloradans insured through the employer market, and asked whether the state should rely on that payer base for long-term program funding.
Technical issues and agency input: The Division of Insurance and plan representatives provided technical feedback. DOI staff and CAP (Colorado Association of Health Plans) asked for calendar alignment so carriers can file rates with knowledge of the fee and urged fiscal guardrails to protect reinsurance funding levels. DOI noted that enterprise dollars leverage federal funds under the state's waiver, telling the committee that the reinsurance dollars draw federal matching dollars that multiply the state investment.
Amendments and committee action: Sponsors offered two amendments during the hearing. The amendments include a trigger so the fee increase would take effect only "if the federal government discontinues or decreases the enhanced ACA subsidies," require the HIAE board to solicit formal input from affected consumers, and require the commissioner to report enterprise revenue and expenditures to the legislature annually. The committee adopted the amendments without objection and "moved House Bill 12-97 to Finance, as amended, with a favorable recommendation," with the roll call begun in committee record. The transcript does not show the committee's final recorded vote tally on the motion within the provided excerpt.
What's next: The bill was moved to the Finance Committee as amended; further action, including floor consideration or final committee votes, will depend on the Finance Committee's schedule and any subsequent floor debate.
