ColoradoSB26-1782026 Regular SessionSenateWALLET

Health Insurance Affordability Measures

Sponsored By: Iman Jodeh (Democratic), Kyle Brown (Democratic), Kyle Mullica (Democratic), Lindsay Gilchrist (Democratic)

Signed by Governor

Health Care & Health Insurance

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Bill Overview

Analyzed Economic Effects

9 provisions identified: 6 benefits, 1 costs, 2 mixed.

Dedicated funding lowers individual health premiums

Starting in 2027, the health affordability enterprise must divide specified annual revenues, bond proceeds, transfers, and other allocated deposits. At least 20% funds subsidies for qualified people paying state-subsidized plan premiums, and at least 50% funds reinsurance. At least 25% lowers exchange plan costs. Up to 3% covers actual administrative costs; the fund also covers actual federal Hyde Amendment compliance costs. Remaining money supports the 18% statewide premium-reduction goal and maintains 2026 premium assistance and enrollment, subject to resources and bond adjustments. After August 1, unspent allocations can move among allowed affordability uses, but not to administration.

Health funding bonds require repayment first

Beginning January 1, 2027, the enterprise can authorize revenue bonds by board resolution to raise up to $100 million total. The money supports approved purposes, including health affordability programs. Bonds must mature within 45 years and are repaid only from pledged affordability-fund money. Bond obligations must be paid before program allocations, leaving less money available for programs. The enterprise must account for savings from the specified reinsurance premium-reduction adjustment when deciding how much to borrow.

More predictable rules for subsidized coverage

The health affordability board must recommend plan rules that favor steady enrollment and predictable coverage. Those recommendations go to the insurance commissioner for approval and adoption through rules. Starting in 2027, the commissioner must consult the board and set premium rules for qualified buyers of state-subsidized individual plans. The law does not specify premium amounts.

More language access for health decisions

Before final recommendations on plans, coverage, or available slots, the board must take reasonable steps to gather public input. Input opportunities must include English and Spanish. Written materials and presentations must be available within seven days after meetings. Other languages must be offered when practical, with requests made at least seven days ahead. The board must explain how affected people's input shaped its final recommendations.

Health fund gains more investment options

The enterprise can invest affordability-fund money without some specified investment limits, except bond proceeds and their earnings. It can hire private investment managers through standard public bidding. Bond proceeds and their earnings follow the usual investment rules unless a corporate trustee uses board-approved alternatives. The board must find those alternatives meet the applicable standard, provide at least comparable income, and help fund approved programs. No investment return or household savings is guaranteed.

Marijuana taxes fund health insurance help

The state treasurer must transfer $40 million from the Marijuana Tax Cash Fund to the Health Insurance Affordability Cash Fund. The transfer is due by June 30, 2026. It adds money for health affordability programs, not a fixed payment to each household. The transfer authority ends July 1, 2027.

Insurers get credits for health contributions

Starting with tax year 2027, qualifying insurers receive enterprise-contribution tax credits, capped at $9 million per year. Insurers must declare intent with their quarterly payment due around July 31, then make their allocated contribution by October 31. Contributions cannot exceed that July premium-tax payment or a lower commissioner-set amount; claiming the credit triggers no additional retaliatory tax. Insurer contributions tied to the first $5 million in allocated credits, plus interest, support exchange operations and reserves. Contributions tied to credits above $5 million, plus interest, support public education; that spending rule ends December 31, 2028.

Older exchange credit ends for insurers

The older insurer tax credit for exchange contributions applies only to tax years through 2026. Insurers must contribute through the statutory allocation process to qualify. Its authorizing section is repealed December 31, 2027. The section lists a $9 million annual allocation cap for September 1, 2022, through August 31, 2027. It also lists a $5 million cap beginning September 1, 2028, despite the earlier repeal date.

Tax-free health bonds retain public safeguards

Colorado banks, insurers, fiduciaries, and other listed entities can invest money they manage in enterprise bonds. They are not required to buy them. Public-money managers can buy these bonds only when they meet state public-investment requirements. Enterprise income and revenues, its bonds, bond transfers, and bond income are exempt from Colorado taxes and assessments. The enterprise can waive the federal income-tax exemption on bond interest in its bond documents.

Sponsors & Cosponsors

Cosponsors

Andrew Boesenecker
Democratic • House
Amy Paschal
Democratic • House
Chad Clifford
Democratic • House
Eliza Hamrick
Democratic • House
Emily Sirota
Democratic • House
Gretchen Rydin
Democratic • House
Jennifer Bacon
Democratic • House
Jamie Jackson
Democratic • House
Julie McCluskie
Democratic • House
Karen McCormick
Democratic • House
Kenny Nguyen
Democratic • House
Katie Stewart
Democratic • House
Lesley Smith
Democratic • House
Meg Froelich
Democratic • House
Mandy Lindsay
Democratic • House
Meghan Lukens
Democratic • House
Manny Rutinel
Democratic • House
Naquetta Ricks
Democratic • House
Sean Camacho
Democratic • House
Yara Zokaie
Democratic • House
Cathy Kipp
Democratic • Senate
Dylan Roberts
Democratic • Senate
Jessie Danielson
Democratic • Senate
Julie Gonzales
Democratic • Senate
Janice Marchman
Democratic • Senate
Lisa Cutter
Democratic • Senate
Lindsey Daugherty
Democratic • Senate
Tony Exum
Democratic • Senate
William Lindstedt
Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 131 • No: 44

House vote • 5/12/2026

Third reading: Bill

Yes: 43 • No: 22

House vote • 5/9/2026

Refer Senate Bill 26-178 to the Committee of the Whole.

Yes: 9 • No: 2

Senate vote • 5/8/2026

Third reading: Amend (l.020)

Yes: 34 • No: 0

Senate vote • 5/8/2026

Third reading: Bill

Yes: 23 • No: 10

Senate vote • 5/7/2026

Refer Senate Bill 26-178, as amended, to the Committee of the Whole.

Yes: 4 • No: 3

Senate vote • 5/6/2026

Adopt amendment L.010

Yes: 6 • No: 1

Senate vote • 4/30/2026

Refer Senate Bill 26-178, as amended, to the Committee on Appropriations.

Yes: 6 • No: 3