HB 1006: Improve Affordability Private Health Insurance - Colorado

Rerevised → Final Act · 7 edits · Aug 27, 2025

MODERATE

This bill modifies the Colorado Health Insurance Affordability Enterprise to activate new funding mechanisms if the federal enhanced premium tax credit is not extended by December 31, 2025. It establishes a $100 million funding source from tax credit sales and authorizes interest-free loans from the unclaimed property trust fund to support reinsurance and individual market subsidies. The changes also mandate detailed annual financial reporting and require the health insurance affordability board to seek public input before making plan recommendations.

Scope change

The bill's scope expanded to include conditional funding provisions that activate only if federal premium tax credit extensions expire, creating a contingency plan for state-funded health insurance subsidies.

FISCAL

Added a $100 million funding source to the health insurance affordability cash fund, derived from tax credit sale proceeds and general fund transfers if proceeds fall short.

Authorized an interest-free loan from the unclaimed property trust fund to the health insurance affordability cash fund if federal premium tax credits are not extended by December 31, 2025.

Modified allocation priorities to allow up to $50 million for reinsurance and up to $50 million for carriers to reduce costs for individuals receiving premium tax credits.

REQUIREMENT

Added requirement for the health insurance affordability board to prepare annual reports detailing revenue sources, expenditures, and surplus amounts.

Added requirement for the board to seek input and recommendations from individuals directly affected by enterprise-funded programs before making final plan recommendations.

TIMELINE

Established effective dates of January 1, 2026, for new funding provisions contingent on federal premium tax credit expiration.

DEFINITION

Added definition of 'enhanced premium tax credit' to clarify the federal legislation that expanded eligibility and amounts for premium tax credits.

Revised → Rerevised · 2 edits · Aug 26, 2025

MINOR

The bill was rerevised to include additional Senate sponsors and updated reading dates, while removing a specific funding allocation provision that directed up to $50 million to a reinsurance program cash fund and $50 million to carriers for individual health plan cost reductions. This removal significantly alters the bill's financial structure by eliminating these specific funding directives.

Scope change

The bill's scope was narrowed by removing specific funding allocation requirements that previously mandated money be distributed to a reinsurance program and health plan carriers.

FISCAL

Deleted provisions requiring the enterprise to allocate up to $50 million to the reinsurance program cash fund and up to $50 million to carriers to reduce individual health plan costs.

TECHNICAL

Added new Senate sponsors (Amabile, Ball, Bridges, Coleman, Cutter, Daugherty, Exum, Gonzales J., Kipp, Michaelson Jenet, Snyder, Sullivan, Wallace, Weissman, Winter F.) and updated reading dates to reflect 3rd Reading Unamended status on August 26, 2025.

Reengrossed → Revised · 6 edits · Aug 25, 2025

MODERATE

The bill was revised from the House version to the Senate version, incorporating Senate amendments that add a new special assessment on hospitals and modify how funds are allocated within the health insurance affordability system. The Senate version expands the funding sources by adding hospital assessments and clarifies the allocation of money to the reinsurance program and carrier subsidies. It also updates reporting requirements and adjusts certain effective dates and conditions related to federal premium tax credit extensions.

Scope change

The bill's scope expanded to include a new special assessment on hospitals in addition to carrier fees, and the allocation rules for the health insurance affordability cash fund were modified to prioritize reinsurance funding.

FISCAL

Added a new special assessment on hospitals to fund the health insurance affordability cash fund, alongside existing carrier fees and tax credit sales.

Modified the allocation rules to prioritize up to $50 million for the reinsurance program cash fund and up to $50 million for carrier subsidies to reduce individual health plan costs.

Added a provision allowing the enterprise to allocate up to $5 million for other purposes specified in the statute, subject to available funds.

REQUIREMENT

Enhanced reporting requirements for the health insurance affordability board to include detailed breakdowns of revenue sources, program allocations, and explanations for any unfunded reinsurance amounts.

TIMELINE

Adjusted effective dates and conditions for certain provisions, tying them to whether federal legislation extends the enhanced premium tax credit for the 2026 plan year.

DEFINITION

Added new definitions and clarified the scope of the health insurance affordability cash fund to include revenues from the new hospital assessment.

Engrossed → Reengrossed · 5 edits · Aug 23, 2025

MODERATE

The bill was reengrossed to include additional co-sponsors and updated the bill summary to reflect third reading status. Substantive policy content was removed, including provisions for a health insurance affordability cash fund and related effective dates.

Scope change

The bill's substantive scope was reduced as key funding and implementation provisions were removed from the reengrossed version.

TECHNICAL

Added multiple co-sponsors to the House sponsorship list, expanding the bill's legislative support.

Updated the bill summary header to indicate third reading unamended status with a new date of August 23, 2025.

FISCAL

Deleted provisions establishing a health insurance affordability cash fund with $100 million in loan funding from the Unclaimed Property Trust Fund.

TIMELINE

Removed the effective date provision that would have implemented the fund on January 1, 2026, contingent on a specific condition being met.

REQUIREMENT

Deleted the statutory amendment that would have added Section 10-16-1206(1.5) to the Colorado Revised Statutes.

Introduced → Engrossed · 4 edits · Aug 22, 2025

MODERATE

This bill was amended during its legislative journey to clarify the conditions under which a $100 million interest-free loan from the unclaimed property trust fund to the health insurance affordability cash fund will be activated. The changes primarily add detailed reporting requirements for the health insurance affordability board to track federal versus state funding sources and explain any unallocated funds. Additionally, the bill includes technical corrections to ensure the loan is not classified as state spending or revenue for constitutional budgeting purposes.

Scope change

The bill's scope remains focused on the Colorado Health Insurance Affordability Enterprise, but the conditions for triggering the emergency funding mechanism were clarified to depend on whether the federal enhanced premium tax credit is extended by December 31, 2025.

REQUIREMENT

Added detailed annual reporting requirements for the health insurance affordability board to track total revenue, federal versus state funding shares, and provide explanations for any unallocated surplus funds.

TECHNICAL

Added language clarifying that the $100 million loan from the unclaimed property trust fund is not classified as state fiscal year spending or state revenue for constitutional budgeting limits.

TIMELINE

Clarified that the loan and related provisions take effect on January 1, 2026, only if the federal enhanced premium tax credit is not extended by December 31, 2025.

ENFORCEMENT

Added requirements for the state auditor to conduct a performance audit by December 31, 2027, to verify compliance with the enterprise's purpose and responsibilities.

Improve Affordability Private Health Insurance

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