Senate Approves Bill to Limit Premium Increases, Protect Access to Healthcare

DENVER, CO – The Senate today passed legislation to blunt health insurance rate increases and reduce the number of Coloradans who could lose their health insurance coverage due to Congress’ continued refusal to extend premium tax credits. 

SB26-178, sponsored by Senators Kyle Mullica, D-Thornton, and Iman Jodeh, D-Aurora, would provide additional funding and financing tools for the Health Insurance Affordability Enterprise (HIAE) to save Coloradans money and maintain coverage. 

“While we’d like for the federal government to step in and extend the tax credits that bring down the cost of healthcare, this bill is a solution for Coloradans that will prevent premiums from skyrocketing and protect access to care,” said Mullica. “Coloradans cannot afford to spend hundreds more every month on health insurance. We are acting now to keep Coloradans insured, and we continue to urge Congress to do their part.” 

“We are all one sickness or accident away from unexpected medical costs – and when we don’t have insurance, these situations become dangerous, deadly, and expensive for the entire healthcare system,” said Jodeh. “This bill continues our work to step up while the federal government is stepping back. We’re limiting premium increases and protecting access to health insurance so that Coloradans can continue to have access to preventive and life-saving healthcare.” 

This bill comes after last year’s HB25B-1006, also sponsored by Mullica and Jodeh, which softened health insurance rate increases and significantly reduced the number of Coloradans who would have lost their health insurance coverage. These bills come in response to Congressional Republicans’ continued refusal to extend the enhanced premium tax credits for people who purchase health insurance through the Affordable Care Act marketplace.

SB26-178 would invest one-time funds in the HIAE. Funding would come from a $40 million transfer from the Marijuana Tax Cash Fund and up to $100 million in revenue bonds issued by the HIAE. The bill would also allow for the HIAE to invest enterprise funds and would create a tax credit incentive for donations to the HIAE. Using these new funds and tools, the bill would:

• Boost funds in the health insurance affordability cash fund to blunt serious increases in insurance premiums and protect coverage, 

• Aim to reduce statewide average premium increases by eighteen percent, and

• Support additional affordability efforts, including on-exchange subsidies and the OmniSalud program, to maintain or increase coverage.

SB26-178 now heads to the House for further consideration. Track its progress HERE.