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HB 1397

Multiple Employer Health Trust Funding

2026 Regular Session

HB 1397 modifies Multiple Employer Health Trust funding rules in Colorado to improve affordability and viability for small business health insurance pools.

Governor Signed
#fiscalpolicy&taxes
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WeVote Research Nonpartisan
Bill Summary · HB 1397

Legislative bill overview

HB 1397 addresses funding mechanisms for Multiple Employer Health Trusts (MEHTs) in Colorado, which are self-insurance arrangements allowing small businesses to pool resources and share healthcare costs. The bill likely modifies how these trusts are capitalized, regulated, or taxed to improve their financial viability and accessibility for participating employers.

Why is this important

MEHTs enable small businesses that couldn't individually afford comprehensive health insurance to access plans competitively. Changes to MEHT funding directly affect affordability and coverage options for thousands of Colorado workers and small employers, while also influencing state insurance market dynamics and tax revenue.

Potential points of contention

  • MEHT solvency concerns: Relaxing funding requirements could make trusts more accessible but may increase insolvency risk, potentially leaving employees without coverage if a trust fails
  • Tax revenue impact: Funding modifications may alter state tax collection from self-insured arrangements, affecting budget priorities
  • Regulatory balance: Stricter funding rules protect consumers but could price small businesses out of the MEHT market, reducing their insurance options

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

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