SB 18-132

Senate Bill 18-132, which has been signed into law, allows Colorado's insurance commissioner to apply for a federal waiver that would permit the sale of catastrophic health plans to individuals aged 30 and older who do not meet hardship requirements. This bill aims to conduct an actuarial analysis to ensure that offering these plans won't reduce tax credits or raise premiums for other residents. If approved, Colorado residents could purchase these less expensive but more limited coverage plans through the state's health exchange, though they wouldn’t qualify for advanced premium tax credits. The bill also allocates funds for the insurance department to carry out this analysis.

Official Summary

The bill requires the commissioner of insurance to conduct an actuarial analysis to determine if the sale of catastrophic health plans to Colorado residents 30 years of age and older and not meeting a hardship requirement would result in a reduction in advanced premium tax credits received by Colorado residents or increase the average premiums of individual health plans. If the actuarial analysis demonstrates that there would not be a reduction in advanced premiums tax credits or an increase in average premiums of individual health plans, the commissioner shall apply to the secretary of the United States department of health and human services for a 5-year waiver of the federal law restricting catastrophic health plans offered through the Colorado health benefit exchange. The waiver, if approved, would permit the offering of catastrophic health plans to any individual residing in Colorado rather than only individuals under the age of 30 or meeting a hardship requirement. Catastrophic health plans under the waiver must only be sold through the health benefit exchange and would not be eligible for advanced premium tax credits. If the waiver is denied, the statutory section is repealed. The bill appropriates $9,200 to the department of regulatory agencies for use by the division of insurance for personal services. (Note: This summary applies to the reengrossed version of this bill as introduced in the second house.) , Read More

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