Division of Insurance Celebrates Signing of Critical Healthcare Legislation to Help Keep Health Insurance Affordable for Coloradans

Division of Insurance Celebrates Signing of Critical Healthcare Legislation to Help Keep Health Insurance Affordable for Coloradans

Governor Polis signed SB26-178 and SB26-167 into law this week

DENVER - The Colorado Division of Insurance (DOI), part of the Department of Regulatory Agencies (DORA), celebrated the signing into law of two critical healthcare bills this week: SB26-178 and SB26-167.

SB26-178 provides $140 million to the Health Insurance Affordability Enterprise for Plan Year 27 to help prevent massive spikes in health insurance costs for Coloradans on the individual market. These cost hikes are being caused by Congress' failure to extend enhanced premium tax credits that expired at the end of last year.

Colorado is one of several states that offers state-level subsidies to consumers on the individual health insurance market to help blunt the loss of the enhanced premium tax credits. Last year's HB25B-1006 helped prevent thousands of Coloradans from losing their healthcare. However, no state can fully cover the loss of the tax credits. Congress still has the ability to extend the enhanced premium tax credits which help millions of Americans afford health insurance.

SB26-167 requires prescription drugs purchased directly through a pharmacy or direct-to-consumer platform to contribute towards an out-of-pocket maximum or cost-sharing requirements required by a health plan on the individual and small and large group markets. Prior to this legislation being enacted, health insurance companies were not required to incorporate prescription drug costs paid by consumers through these means.

"These pieces of legislation, now signed into law, will improve the healthcare landscape for hundreds of thousands of Coloradans. Without passage of SB26-178, health insurance costs for hundreds of thousands of Coloradans would surge due to the federal government's inability to come together to extend the enhanced premium tax credits that people depend on. This law will ensure that more Coloradans will be able to keep their healthcare. SB26-167 will allow consumers to take advantage of cheaper prescription drugs offered directly through pharmacies and direct-to-consumer platforms and get credit towards their out-of-pocket maximum and cost-sharing requirements in their health plans. There is no reason consumers' health care plans shouldn't incorporate those costs. I'm proud that we supported these bills through the legislative process, and I thank the bill sponsors and the Governor for crafting and implementing these important policies," said Colorado Insurance Commissioner Michael Conway.

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