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HB 25B-1006

Improve Affordability Private Health Insurance

2025 First Extraordinary Session Introduced by Judy Amabile and 51 co-sponsors

House Bill 25B-1006 boosts health insurance affordability in Colorado by providing $100M in loans and $125M in tax credits to support subsidies for individuals.

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Bill Summary · HB 25B-1006

Summary of House Bill 25B-1006: Improve Affordability of Private Health Insurance

Purpose and Intent

House Bill 25B-1006 aims to enhance the affordability of private health insurance in Colorado by modifying the existing Health Insurance Affordability Enterprise (HIAE). The bill introduces mechanisms to generate funding through tax credits and reallocates existing resources to support health insurance subsidies for individuals purchasing plans on the Colorado health benefit exchange.

Key Provisions

  1. Interest-Free Loan:

    • The bill authorizes an interest-free loan of $100 million from the Unclaimed Property Trust Fund to the Health Insurance Affordability Cash Fund. This loan is contingent upon the federal enhanced premium tax credit not being extended by December 31, 2025.

  2. Tax Credit Sales:

    • The State Treasurer is empowered to sell insurance premium and income tax credits, with a total face value of up to $125 million. The anticipated revenue from these sales is projected to be up to $103.2 million.
    • The proceeds from these sales will first cover administrative costs, with the next $100 million directed to the HIAE Cash Fund.

  3. Allocation of Funds:

    • Funds generated from tax credit sales will be allocated as follows:
      • Up to $50 million to the Reinsurance Program Cash Fund.
      • Up to $50 million to health insurance carriers to reduce costs for individuals purchasing health plans on the exchange.
      • Up to $5 million for other HIAE programs.

  4. Reporting and Accountability:

    • The HIAE Board is required to prepare an annual report detailing financial information and recommendations for maximizing enrollment in state-subsidized plans. This report must be submitted to the General Assembly and made available in both English and Spanish.

  5. Audit Requirements:

    • A performance audit of the HIAE is mandated to be completed by December 31, 2027.

Impact

  • Affected Parties: The bill primarily impacts individuals purchasing health insurance on the Colorado health benefit exchange, insurance carriers, and the HIAE.
  • Financial Implications: The bill is expected to generate significant funding for health insurance affordability initiatives, with potential revenue impacts on state funds and the General Fund depending on the success of tax credit sales.
  • Timeline: The provisions of the bill, particularly the loan and fund allocations, are set to take effect on January 1, 2026, contingent on the specified conditions regarding federal tax credits.

Conclusion

House Bill 25B-1006 represents a strategic effort by the Colorado legislature to bolster the affordability of health insurance in the state. By leveraging tax credits and reallocating existing resources, the bill aims to provide financial relief to individuals and enhance access to necessary health coverage.

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

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