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HB 25B-1014

Health Insurance Affordability Fund Allocation

2025 First Extraordinary Session Introduced by Carlos Barron and 1 co-sponsor

The bill would shift Health Insurance Affordability Enterprise spending to a board-driven allocation starting 2026, prioritizing premium reductions for documented residents and pub

Introduced In House - Assigned to Health & Human Services
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Bill Summary · HB 25B-1014

HB 25B-1014: Health Insurance Affordability Fund Allocation – Summary

Overview

HB 25B-1014, introduced August 21, 2025 and assigned to the House Health & Human Services committee, would change how funds in the Health Insurance Affordability Enterprise (HIAE) are allocated. The bill removes statutorily fixed allocation rules for HIAE revenues collected after July 1, 2026 and requires the HIAE board to establish new allocation rules that prioritize reducing costs for documented Colorado residents. The bill would also add reporting requirements on HIAE expenditures. Sponsors: Rep. Barron and Sen. Bright.

Status: Introduced and referred to Health & Human Services; the House committee recommended postponing the bill indefinitely on August 21, 2025. The version circulated is the introduced text and a subsequent fiscal note.

What the bill would change

  • Replace the current, statutorily defined split of HIAE revenue with board-determined allocation rules starting July 1, 2026.
  • New allocation priorities (as introduced) focus on:
    • Reducing premium increases and preventing loss of health coverage in the individual market and for those who cannot obtain coverage through the exchange.
    • Evaluating the costs of state-subsidized individual plans and prioritizing premium reductions for documented residents.
    • Publishing an on-line report detailing estimated and actual costs of state-subsidized plans and the resulting fund allocations.
    • Presenting evaluations, cost comparisons, and allocations to the General Assembly as part of the Division’s 2027 legislative presentation.
  • The bill would shift spending within the HIAE from FY 2026-27 onward based on new board-determined allocation rules; it anticipates a likely decrease in OmniSalud funding and a corresponding increase in other HIAE programs.

Key provisions and details

  • Allocation framework: For funds deposited after July 1, 2026, the HIAE board determines allocation rules rather than following current statutory percentages.
  • Priorities:
    • Align with reducing health coverage plan premiums and preventing loss of coverage for documented residents and individuals in the individual market.
    • Assess and prioritize costs of state-subsidized plans for documented residents.
    • Publish a public report on the Division’s website detailing cost estimates and actual costs for evaluated plans.
  • Reporting: The commissioner would present evaluations, cost comparisons, and fund allocations to the General Assembly during the 2027 session or earlier as required.
  • Effective date: The act would take effect 90 days after adjournment sine die, with a potential delay if a referendum petition is filed; in that case, it would take effect only if approved by voters in November 2026.

Fiscal impact (per fiscal notes)

  • General finding: No net increase or appropriation is required; total expenditures are projected to remain unchanged, but spending within HIAE would shift among programs starting in FY 2026-27.
  • Workload and administration: Increases in HIAE workload to develop new allocation rules and meet reporting requirements.
  • Programmatic shifts: Expectation of reduced OmniSalud expenditures, offset by increased spending in other HIAE programs according to the new rules.
  • The fiscal notes consistently note zero net state expenditures and zero net FTE changes, aside from added administrative workload.

Background and context

  • The HIAE was created by SB 20-215 within DORA (Division of Insurance).
  • Current allocations fund:
    • Reinsurance program (federal funds, with constraints)
    • OmniSalud program (state program for undocumented residents)
    • On-Exchange subsidies (premium supports)
    • Administrative costs
  • Federal rules require federal funds to be spent on Reinsurance; carrier fees support all three programs, subject to annual allocation rules.

Legislative status and next steps

  • As introduced, the bill aimed to reallocate funds toward documented residents and reduce premiums.
  • The House committee recommended postponement indefinitely on August 21, 2025, effectively stalling further action in the current session.
  • If revived, the bill would need to clear House and Senate approval and potential voter consideration if a referendum is filed.

This summary provides the bill’s purpose, how allocations would change, who is affected (notably documented residents and program funding allocations), and the timeline and procedural context.

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

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