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Bill Detail: SB20-215

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Title Health Insurance Affordability Enterprise
Status Governor Signed (06/30/2020)
Bill Subjects
  • Health Care & Health Insurance
House Sponsors C. Kennedy (D)
J. McCluskie (D)
Senate Sponsors D. Moreno (D)
K. Donovan (D)
House Committee Finance
Senate Committee Finance
Date Introduced 06/02/2020

The bill establishes the health insurance affordability enterprise,
for purposes of section 20 of article X of the state constitution, that is
authorized to assess a health insurance affordability fee (insurer fee) on
certain health insurers and a special assessment (hospital assessment) on
hospitals in order to:
  • Provide business services to carriers that pay the fee,
including services to increase enrollment in health benefit
plans offered by carriers across the state; increasing the
number of individuals who are able to purchase health
benefit plans in the individual market by providing
financial support for certain qualifying individuals; funding
the reinsurance program that offsets the costs carriers
would otherwise pay for covering consumers with high
medical costs; improving the stability of the market
throughout the state by providing consistent private health
care coverage and reducing the movement of individuals
between group and individual coverage and from insured
to uninsured status; and reducing provider cost shifting
from the individual market and the uninsured to the group
market; and
  • Provide business services to hospitals, including increasing
hospital revenues by reducing the amount of
uncompensated care provided by hospitals; and reducing
the need of providers to shift costs of providing
uncompensated care to other payers.
The enterprise is to start assessing and collecting the insurer fee in
2021, which fee is based on a percentage of premiums collected by health
insurers in the previous calendar year on health benefit plans issued in the
state. The hospital assessment is a specified amount assessed and
collected in the 2022 and 2023 calendar years. Money collected from the
insurer fee and hospital assessment is to be deposited in the health
insurance affordability cash fund (fund), which the bill creates. The bill
also transfers an amount of premium taxes collected by the state in 2020
or later years that exceeds the amount collected in 2019, but not more
than 10% of the enterprise's revenues, to the fund.
The enterprise is required to use the insurer fee, the hospital
assessment, and any premium tax revenues or other money available in
the fund, in accordance with the allocation specified in the bill, for the
following purposes:
  • To provide funding for the reinsurance program established
by House Bill 19-1168;
  • To provide payments to carriers to increase the
affordability of health insurance on the individual market
for Coloradans who receive the premium tax credit
available under federal law;
  • To provide subsidies for state-subsidized individual health
coverage plans purchased by qualified low-income
individuals who are not eligible for the premium tax credit
or public assistance health care programs;
  • To pay the actual administrative costs of the enterprise and
the division of insurance for implementing and
administering the bill, limited to 3% of the enterprise's
revenues; and
  • To pay the costs for consumer enrollment, outreach, and
education activities regarding health care coverage.
The enterprise is governed by a 9-member board composed of the
executive director of the Colorado health benefit exchange and the
commissioner of insurance or their designees and 7 members appointed
by the governor and representing various aspect of the health care
industry and health care consumers.
With regard to the reinsurance program and enterprise established
pursuant to House Bill 19-1168, the bill:
  • Incorporates the reinsurance program enterprise within the
health insurance affordability enterprise;
  • Eliminates funding for the reinsurance program from
special assessments on hospitals and health insurers, excess
premium tax revenues, and specified transfers from the
state general fund and instead allocates a portion of the
health insurance affordability enterprise revenues to the
reinsurance program annually; and
  • Extends the reinsurance program, subject to federal
approval of a new or extended state innovation waiver to
enable the state to operate the reinsurance program and
access federal funding for the program.

Committee Reports
with Amendments
Full Text
Full Text of Bill (pdf) (most recent)
Fiscal Notes Fiscal Notes (06/12/2020) (most recent)  
Additional Bill Documents Bill Documents
  • Past bill versions
  • Past fiscal notes
  • Committee activity and documents
  • Bill History
Lobbyists Lobbyists
Votes House and Senate Votes
Vote Totals Vote Totals by Party
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