WeVote
Log In

Bill

Bill

HB 25-1297

Health Insurance Affordability Enterprise Update

2025 Regular Session Introduced by Kyle Brown and 2 co-sponsors

The bill would raise the Health Insurance Affordability Enterprise fee by up to 1% to fund subsidies, reinsurance, and new affordability programs.

House Committee on Finance Postpone Indefinitely
0
WeVote Research Nonpartisan
Bill Summary · HB 25-1297

HB 25‑1297 — Health Insurance Affordability Enterprise Update

Status: Postponed Indefinitely by House Committee on Finance (May 6, 2025)
Introduced: March 5, 2025 | Sponsors: Sens. Iman Jodeh; Reps. Lindsay Gilchrist, Kyle Brown

Purpose / Intent

The bill would have updated the Health Insurance Affordability Enterprise (HIAE) in the Department of Regulatory Agencies to preserve and expand programs that lower individual-market premiums and subsidize coverage. It authorized raising the HIAE fee assessed on insurance carriers by up to one percentage point (starting in calendar year 2026) and redirected how fee revenue is allocated among reinsurance, state subsidies, Exchange affordability payments, administrative costs, and new/emerging initiatives.

Key provisions

  • Fee increase: Allows the commissioner to raise the HIAE carrier fee by up to 1.0 percentage point above current caps beginning in 2026. (Some bill versions condition this increase on changes to federal enhanced ACA subsidies.)
  • New allocation formula for revenues assessed in 2026 and after:
    • Up to 40% for state-subsidized individual coverage (OmniSalud / qualified individuals)
    • Up to 40% to the reinsurance program cash fund
    • Up to 10% to lower costs for Exchange plans (for those receiving premium tax credits)
    • Up to 3.5% for administrative costs
    • Up to 6.5% (plus any remaining amounts) for reserves, new/emerging affordability initiatives, or reallocation among categories
  • Expands allowable uses of funds to cover compliance costs (e.g., Hyde amendment-related or similar), and to support legally protected health‑care activity and other affordability efforts.
  • Allows the enterprise to seek, accept, and expend gifts, grants, and donations.
  • Reporting and stakeholdering: requires annual HIAE revenue/expenditure reports to legislative committees beginning January 15, 2026; directs the commissioner to notify carriers of fee amounts in advance (dates specified).

Fiscal impact (estimates from Legislative Council)

  • Estimated additional annual revenue if fee raised by 1.0%: $67,823,157 (based on $6.78 billion in premiums subject to the fee).
    • For‑profit carriers: ~$43.55 million
    • Nonprofit carriers: ~$24.27 million
  • Corresponding increase in HIAE expenditures; shifts in program funding (examples shown in fiscal notes: reduced reinsurance funding and increased OmniSalud/subsidy funding).
  • No General Fund appropriation required; all activity paid from the Health Insurance Affordability Cash Fund. Revenue not subject to TABOR.

Affected parties

  • Health insurance carriers (fee payers)
  • Individuals in the individual insurance market (benefit from reinsurance, state subsidies, Exchange affordability payments)
  • HIAE/DORA (administration, reporting, and program management)

Legislative/timing notes

  • Effective on governor’s signature (or upon becoming law without signature).
  • The bill progressed through Health & Human Services (referenced as amended) and was heard in Finance; it was postponed indefinitely on May 6, 2025. The fiscal notes and timelines varied across initial and revised versions (some indicated revenue accrual beginning FY2026‑27 vs. FY2027‑28). Because the bill was postponed indefinitely, the projected impacts would not take effect.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.