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April 28, 2022 HB 22-1269
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Revised Fiscal Note
(replaces fiscal note dated March 30, 2022)
Drafting Number:
Prime Sponsors:
LLS 22-0288
Rep. Lontine
Sen. Hansen
Date:
Bill Status:
Fiscal Analyst:
April 28, 2022
Senate Business
Annie Scott | 303-866-5851
Annie.Scott@state.co.us
Bill Topic: HEALTH-CARE SHARING PLAN REPORTING REQ UIREMENTS
Summary of
Fiscal Impact:
☒ State Revenue
☒ State Expenditure
☒ State Diversion
☒ TABOR Refund
☐ Local Government
☐ Statutory Public Entity
The bill requires the Commissioner of Insurance to oversee individuals offering health
care sharing plans or arrangements that serve Colorado residents. The bill increases
state expenditures and may increase revenue on an ongoing basis beginning in FY
2022-23.
Appropriation
Summary:
For FY 2022-23, the bill requires an appropriation of $84,568 to the Department of
Regulatory Agencies.
Fiscal Note
Status:
The revised fiscal note reflects the reengrossed bill.
Table 1
State Fiscal Impacts Under HB 22-1269
Budget Year
FY 2022-23
Out Year
FY 2023-24
Revenue
- -
Expenditures Cash Funds $84,568 $59,486
Centrally Appropriated $8,516 $8,516
Total Expenditures $93,084 $68,002
Total FTE 0.6 FTE 0.6 FTE
Diversion General Fund ($93,084) ($68,002)
Cash Funds $93,084 $68,002
Net Diversion $0 $0
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April 28, 2022 HB 22-1269
Summary of Legislation
The bill requires the Commissioner of Insurance (commissioner) in the Division of Insurance (DOI) in
the Department of Regulatory Agencies (DORA) to oversee individuals offering health care sharing
plans or arrangements that serve Colorado residents. The individual is required to submit certified
information to the commissioner about the plan or arrangement, including:
the current number of participants, and estimated number of participants in the next calendar
year, funds collected, including the percentage retained for administration;
the total dollar amount of requests submitted for reimbursement, and the total dollar amount of
requests that were qualified, denied, and yet-to-be reimbursed in the preceding calendar year;
specific counties and other states where the plan or arrangement is offered;
copies of any consumer-facing and marketing materials;
contact information for the individual acting as the contact for the plan or arrangement in
Colorado and any associated third parties.
The commissioner is required to determine whether the submission is complete within 45 days. If the
submission is determined to be incomplete, the commissioner is required to provide notification and
time to remedy the deficiency and may subsequently levy a fine and issue a cease and desist order as
necessary. The commissioner must prepare a report summarizing the information, and submit the
report to the Senate Health and Human Services Committee and the House Health and Insurance
Committee. The DOI’s website must include information about how to file a complaint about an
individual offering a health care sharing plan or arrangement, and the commissioner may adopt rules
to implement the requirements of the bill.
State Revenue
To the extent that individuals offering health care sharing plans or arrangements are assessed fines,
funds in the Division of Insurance Cash Fund will increase. Fine revenue is subject to TABOR
State Diversion
The bill diverts $93,084 from the General Fund to the Division of Insurance Cash Fund in FY 2022-23
and $68,002 in FY 2023-24. This revenue diversion occurs because the bill increases costs in the DOI,
which is funded with premium tax revenue that would otherwise be credited to the General Fund.
Assumptions
The fiscal note assumes that the bill will generate 60 filings per fiscal year and that each filing will
require 12 hours of DOI staff time to review the report, determine whether all necessary information
is present, and analyze and summarize the data.
The fiscal note also assumes the DOI will need to follow-up with at least half of the entities submitting
reports to get additional clarification or address any missing elements, and then re-review reports for
both completeness and to analyze and summarize the data. Page 3
April 28, 2022 HB 22-1269
Finally, it is assumed that the DOI will require 100 hours of staff time to summarize the data
submissions into a report.
State Expenditures
The bill increases state expenditures in the DOI in DORA by $93,084 in FY 2022-23 and $68,002 in
FY 2023-24 from the Division of Insurance Cash Fund. Expenditures are shown in Table 2 and detailed
below.
Table 2
Expenditures Under HB22-1269
Cost Components FY 2022-23 FY 2023-24
Department of Regulatory Agencies
Personal Services $39,097 $39,097
Operating Expenses $675 $675
Capital Outlay Costs $6,200 -
Legal Services Costs $19,714 $19,714
Technology Costs $18,882 -
Centrally Appropriated Costs
1
$8,516 $8,516
FTE – Personal Services 0.5 FTE 0.5 FTE
FTE – Legal Services 0.1 FTE 0.1 FTE
Total $93,084 $68,002
Total FTE 0.6 FTE 0.6 FTE
1
Centrally appropriated costs are not included in the bill's appropriation.
Staffing costs. Beginning in FY 2022-23, based on the assumptions listed above, the DOI requires
0.5 FTE to review submissions, address deficiencies, and summarize the data submissions into a
report.
Technology costs. In FY 2022-23 only, the DOI requires 295 hours of programming staff time to
develop and implement technology to receive and track submissions and provide reporting. It is
assumed that this data collection will be incorporated into the Premium Tax system. This work will
be conducted by the Office of Information Technology.
Legal services. Beginning in FY 2022-23, the DOI require 200 hours and 0.1 FTE of legal services,
provided by the Department of Law to assist with rule making and prepare and represent the DOI
with emergency cease and desist orders.
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April 28, 2022 HB 22-1269
Centrally appropriated costs. Pursuant to a Joint Budget Committee policy, certain costs associated
with this bill are addressed through the annual budget process and centrally appropriated in the Long
Bill or supplemental appropriations bills, rather than in this bill. These costs, which include employee
insurance and supplemental employee retirement payments, are shown in Table 2.
Effective Date
The bill takes effect upon signature of the Governor, or upon becoming law without his signature, and
applies to conduct occurring on or after the bill’s effective date.
State Appropriations
For FY 2022-23, the bill requires a Division of Insurance Cash Fund appropriation of $84,568 to the
Department of Regulatory Agencies and 0.5 FTE. Of this amount, $18,882 is reappropriated to the
Office of Information Technology, and $19,714 is reappropriated to the Department of Law with
0.1 FTE.
State and Local Government Contacts
Information Technology Law Regulatory Agencies
The revenue and expenditure impacts in this fiscal note represent changes from current law under the bill for each
fiscal year. For additional information about fiscal notes, please visit: leg.colorado.gov/fiscalnotes.