HB 25-1297
Fiscal Note
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
HB 25-1297: HEALTH INSURANCE AFFORDABILITY ENTERPRISE UPDATE
Prime Sponsors:
Rep. Brown; Gilchrist
Sen. Jodeh
Published for: House Finance
Drafting number: LLS 25-0887
Fiscal Analyst:
Kristine McLaughlin, 303-866-4776
kristine.mclaughlin@coleg.gov
Version: First Revised Note
Date: April 8, 2025
Fiscal note status: This revised fiscal note reflects the introduced bill as amended by the House Health &
Human Services Committee and was updated based on corrected timeline information
Summary Information
Overview. The bill raises the fee cap and changes the funding allocation of the Health Insurance
Affordability Enterprise.
Types of impacts. The bill is projected to affect the following areas on an ongoing basis:
State Revenue State Expenditures
Appropriations. No appropriation is required. All expenditures are paid from the Health Insurance
Affordability Cash Fund, which is continuously appropriated.
Table 1
State Fiscal Impacts
Type of Impact
Budget Year
FY 2025-26
Out Year
FY 2026-27
State Revenue (Cash Funds) $0 $67,823,157
State Expenditures (Cash Funds) $0 $67,823,157
Transferred Funds $0 $0
Change in TABOR Refunds $0 $0
Change in State FTE 0.0 FTE 0.0 FTE Page 2
April 8, 2025 HB 25-1297
Summary of Legislation
Senate Bill 20-215 created the Health Insurance Affordability Enterprise (the enterprise) in the
Department of Regulatory Agencies (DORA). The enterprise assesses a fee on health insurance
carriers, which is currently caped at 1.15 percent of premiums for nonprofit carriers and
2.1 percent for for-profit carriers. As shown in Table 2, funds are allocated to several initiatives to
reduce individual insurance market premiums, including:
the reinsurance program which covers a portion of claims for high cost individuals;
the OmniSalud program which subsides insurance for Coloradans with incomes below 300
percent of the federal poverty line who are not eligible for federal tax credits or state-funded
insurance; and
payments to carriers to lower the cost of purchasing insurance through the Health Insurance
Exchange for individuals who meet federal requirements, including having an income
between 133 and 400 percent of the federal poverty line.
Starting in FY 2026-27, the bill increases the carrier fee cap by up to 1.0 percent and changes the
funding allocations as shown in Table 2. This increase is conditional on federal action to reduce
or eliminate enhanced subsidies under the federal Affordable Care Act, which has already
occurred.
Additionally, the bill requires the enterprise to produce a report and conduct stakeholdering,
and allows the enterprise to accept gifts, grants, and donations.
Table 2
Change to Funding Allocation for
the Health Insurance Affordability Enterprise
HIAE Costs Current Law Under HB 25-1297
Reinsurance Program Lesser of 73 percent or $90 million 40 percent
OmniSalud Program $18 million plus any remaining 40 percent
Health Insurance Exchange Up to 10 percent 10 percent
Emerging Initiatives Not available 6.5 percent
Administrative 3 percent 3.5 percent
Page 3
April 8, 2025 HB 25-1297
State Revenue
Revenue will increase to the Health Insurance Affordability Enterprise in DORA if, as allowed by
the bill, the enterprise raises fees on insurance premiums by 1.0 percent starting in calendar year
2026. There is a lag between when fees are increased and revenue is accrued, resulting in the
potential increase in revenue starting in FY 2026-27 as shown in Table 3. This revenue is not
subject to TABOR.
Table 3
Annual Change in Insurance Premium Fee Revenue
Starting in FY 2026-27
Fee Premiums Subject to Fee Fee Increase Revenue Increase
Insurance Premium Fee - For-Profit $4,355,338,320 1.0% $43,553,383
Insurance Premium Fee - Nonprofit $2,426,977,389 1.0% $24,269,774
Total FY 2026-27 $6,782,315,709 1.0% $67,823,157
State Expenditures
Expenditures in the Health Insurance Affordability Enterprise in DORA will increase to the extent
that revenue increases by the amounts shown in Table 3 above. Workload will also minimally
increase to solicit stakeholder input and produce the report.
Additionally, the bill changes the funding allocation for programs within the enterprise starting
in FY 2026-27 as shown in Table 2 above. Table 4 shows how the reallocation in revenue will
affect enterprise expenditure. Only revenue that the Enterprise receives from the Insurance
Premium Fee after calendar year 2026 is affected by the bill and shown in Table 4.
Table 4
Change in Program Funding under HB 25-1297
HIAE Costs Current Law Under HB 25-1297 Net Change
Reinsurance Program $87,141,812 $74,878,201 -$12,263,611
OmniSalud Program $18,000,000 $74,878,201 $56,878,201
Health Insurance Exchange $10,649,363 $18,719,550 $8,070,187
Emerging Initiatives $0 $12,167,708 $12,167,708
Administrative $3,581,170 $6,551,843 $2,970,672
Total FY 2026-27 $119,372,345 $187,195,502 $67,823,157 Page 4
April 8, 2025 HB 25-1297
Effective Date
The bill takes effect upon signature of the Governor, or upon becoming law without his
signature.
State and Local Government Contacts
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 the General Assembly website.