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February 22, 2022 SB 22-081
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Revised Fiscal Note
(replaces fiscal note dated February 10, 2022)
Drafting Number:
Prime Sponsors:
LLS 22-0541
Sen. Smallwood
Date:
Bill Status:
Fiscal Analyst:
February 22, 2022
Senate Finance
Annie Scott | 303-866-5851
Annie.Scott@state.co.us
Bill Topic: HEALTH EXCHANGE EDUCATION CAMPAIGN HEALTH -CARE SERVICES
Summary of
Fiscal Impact:
☒ State Revenue
☒ State Expenditure
☐ State Transfer
☒ TABOR Refund
☐ Local Government
☒ Statutory Public Entity
The bill requires the Board of the Colorado Health Benefit Exchange to create and
implement a public awareness and education campaign to inform consumers about
health-care coverage options. The bill will decrease state revenue, and increase state
workload, and statutory public entity expenditures and workload on an ongoing basis.
Appropriation
Summary:
No appropriation is required.
Fiscal Note
Status:
The revised fiscal note reflects the introduced bill as amended by the Senate State,
Veterans, and Military Affairs Committee.
Table 1
State Fiscal Impacts Under SB 22-081
Budget Year
FY 2022-23
Out Year
FY 2023-24
Revenue General Funds ($5,000,000) ($5,000,000)
Expenditures
- -
Transfers - -
Other Budget Impacts TABOR Refund ($5,000,000) ($5,000,000)
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February 22, 2022 SB 22-081
Summary of Legislation
The bill requires that the Board (board) of the Colorado Health Benefit Exchange (exchange) create
and implement a public awareness and education campaign to inform consumers about healthcare
coverage options by July 1, 2023. The campaign will provide education focused on attaining and
retaining coverage, as well as eligibility and costs, including efforts to:
improve health literacy;
assist individuals who lose minimum coverage;
reduce the number of eligible individuals without coverage; and
reach individuals who are no longer eligible for benefits under Medicaid or the Children’s Basic
Health Plan Act.
The board must report to the Colorado Health Insurance Exchange Oversight Committee annually
about the campaign activities in the previous calendar year, details of funds spent, recommendations
concerning the campaign, and whether the duties of the board should continue.
In current law, the Commissioner of Insurance must allocate up to $5.0 million of premium tax credits
per year. The bill increases this to $10.0 million for tax years 2022 through 2028.
The bill requires that the contributions from insurers that were allocated to the first $5.0 million of tax
credits and any interest gained from the deposit and investment of the contributions are used to
operate the exchange and build reserves. Contributions from insurers allocated in excess of the first
$5.0 million of tax credits, and any interest derived from the deposit and investment of the money, are
to be used for the campaign.
The requirements of the bill repeal on December 31, 2028.
Background
Connect for Health Colorado. Connect for Health Colorado is the state's health insurance exchange
established in response to federal health care reform under the Affordable Care Act (ACA). Through
Connect for Health Colorado, consumers can shop for health insurance and determine eligibility for
federal tax subsidies for the purchase of health insurance or other public health programs. Under the
ACA, states may establish state-based health insurance exchanges or participate in a federally
operated health exchange.
State Revenue
The bill reduces General Fund revenue by up to $5.0 million in FY 2022-23 through the repeal of the
bill in FY 2028-29, for a total reduction of $35.0 million, as it is assumed that the full tax credit increase
will be available for tax year 2022 upon implementation of the bill, as well as in tax year 2028.
Currently, insurers may claim a credit against their premium taxes, up to a statewide total of
$5.0 million per year and this fiscal note assumes that insurers will claim the new statewide total of
$10.0 million per year. If insurers do not claim the full tax credit amount in 2022, it will be available
in the following tax year, and the decrease in state revenue will be delayed. Page 3
February 22, 2022 SB 22-081
State Expenditures
Department of Regulatory Agencies. The bill may increase workload for the Division of Insurance.
Insurers may file requests up to the new tax credit cap of $10.0 million and depending on the effective
date of the bill, may resubmit their rate filings for 2022 to include the new assessment. Currently
two insurers request the premium tax credits. If new insurers submit requests for premium tax
credits, the division will review their supporting documentation, compare financial documents, and
verify calculations. It is assumed that this workload increase can be accomplished within existing
resources.
Other Budget Impacts
TABOR refunds. The bill is expected to decrease the amount of state revenue required to be refunded
to taxpayers by the amounts shown in the State Revenue section above. This estimate assumes the
December 2021 LCS revenue forecast. A forecast of state revenue subject to TABOR is not available
beyond FY 2023-24. Because TABOR refunds are paid from the General Fund, decreased General
Fund revenue will lower the TABOR refund obligation, but result in no net change to the amount of
General Fund otherwise available to spend or save.
Statutory Public Entity Impacts
Connect for Health Colorado. Connect for Health Colorado will run a public education and
awareness campaign at a cost of $5.0 million per year. It is assumed that the cost will be covered by
contributions from insurers and any interest derived from the deposit and investment of the money,
as described in the bill.
Effective Date
The bill takes effect 90 days following adjournment of the General Assembly sine die, assuming no
referendum petition is filed.
State and Local Government Contacts
Connect for Health Colorado Health Care Policy and Financing
Information Technology Regulatory Agencies
Treasury
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.