The legislation is expected to enhance health insurance affordability through structured financial allocations. Specifically, it designates up to 40% of the HIAE fee revenue towards state-subsidized health coverage plans and a matching portion to the reinsurance program cash fund. This dual allocation strategy aims to provide financial support to individuals up to 250% of the federal poverty line while ensuring that the overall insurance market remains viable and competitive. Adjustments in the fee structure will allow for continued support of insurance initiatives that contribute to maintaining or increasing health coverage.
Summary
House Bill 1297 aims to update the Health Insurance Affordability Enterprise (HIAE) to ensure continued coverage for health insurance needs in Colorado. Starting in 2026, the bill allows for an incremental increase in the health insurance affordability fee, which is collected from insurance carriers. This fee is critical for maintaining and administering various affordability programs aimed at reducing health insurance premiums for low-income individuals purchasing coverage through the Colorado health benefit exchange. Such adjustments are seen as necessary to address ongoing health insurance affordability challenges in the state.
Contention
Key points of contention surrounding HB 1297 primarily revolve around its provisions for potential fee increases and the management of the accumulated funds. Some stakeholders may express concern regarding the burden placed on insurance carriers due to increased fees. Additionally, discussions may arise on the effectiveness of the proposed funds' allocation, particularly whether the earmarking of 40% for subsidies and the reinsurance program adequately addresses the diverse needs of the underserved populations. There is also potential debate over the appropriateness of seeking external gifts and grants to further bolster the operations of the HIAE.