HB 25-1297

House Bill 25-1297, also known as the "Health Insurance Affordability Enterprise Update," aims to make health insurance more affordable in Colorado starting from 2026. It allows for an increase in a fee charged to insurance companies by up to one percentage point, which will be used to fund programs that lower premiums and provide subsidies for low-income individuals buying insurance through the state's health exchange. The bill also specifies how this increased fee will be allocated: up to 40% each for individual health coverage plans and the reinsurance program, with the rest going towards other initiatives aimed at making health insurance more affordable. Since the bill has been signed into law, it means that these changes are now official policy in Colorado and will begin implementation as planned.

Official Summary

Beginning in 2026, the bill authorizes an increase to the health insurance affordability fee assessed and collected from insurance carriers (carriers) by up to one percentage point to implement and administer the health insurance affordability enterprise (HIAE). The bill includes objectives for the commissioner of insurance (commissioner) to consider in determining whether to increase the HIAE fee, including, in part, maintaining HIAE programs to achieve a premium reduction in the reinsurance program and to provide subsidies for individuals with low income who purchase insurance on the Colorado health benefit exchange. The commissioner shall notify carriers of the amount of the HIAE fee for the upcoming calendar year. The bill changes the allocation of the HIAE fee assessed for 2026, dedicating up to 40% each to state-subsidized individual health coverage plans purchased by qualified individuals and to the reinsurance program cash fund, with the remaining revenue allocated for other purposes specified in the bill, including new and emerging health insurance affordability initiatives. The bill authorizes the enterprise to seek, accept, and expend gifts, grants, or donations for the purposes of the HIAE. (Note: This summary applies to this bill as introduced.)

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