HB 23-1224

House Bill 23-1224, also known as the Standardized Health Benefit Plan Act, aims to simplify and standardize health insurance plans available on Colorado's health benefit exchange. The bill requires insurance companies to provide these standardized plans at specific premium rates set by law, and it allows the state to regulate administrative costs and profits for these plans. If an insurance company cannot meet these requirements, they must explain their situation and may face a public hearing before getting approval for different rates. This bill was signed into law on May 10, 2023, and is now in effect, impacting health insurance providers and consumers in Colorado who use the state's health benefit exchange.

Official Summary

The act makes changes to the "Colorado Standardized Health Benefit Plan Act" to require the Colorado health benefit exchange (exchange), in collaboration with the commissioner of insurance (commissioner), and after a stakeholder engagement process with consumers, producers, and insurance carriers (carriers), to develop a format for displaying the standardized health benefit plans (standardized plans) on the exchange. The act requires carriers to file with the commissioner insurance rates for the standardized plans that comply with the premium rates specified in law for the standardized plans. The act allows the commissioner to establish uniform limits on carriers' administrative costs and profits for standardized plans. Under the act, if a carrier is unable to offer the standardized plan at the required premium rates: The carrier must provide relevant information concerning the steps the carrier will take to meet the requirements, along with supporting documentation; and The division of insurance may hold a public hearing, pursuant to notice by the commissioner and in a manner specified by rules promulgated by the commissioner, prior to the approval of the carrier's final rates. APPROVED by Governor May 10, 2023 EFFECTIVE May 10, 2023 (Note: This summary applies to this bill as enacted.)

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