HB 19-1168: Colorado Reinsurance Program

• Creates the Colorado Reinsurance Program to provide reinsurance payments to health insurers for high-cost claims in the individual market, contingent on federal approval of a state innovation waiver or federal funding.

• Establishes the Reinsurance Program Cash Fund supported by federal pass-through funding, special fees on hospitals (up to $40 million annually) and carriers (2.2% of premiums if federal health insurance tax is suspended), and premium tax revenue increases over 2019 levels.

• Sets payment parameters (attachment point, coinsurance rate, reinsurance cap) determined by the Insurance Commissioner to achieve 15-35% claims cost reductions depending on geographic rating area, with higher reductions prioritized for rural areas.

• Requires the Commissioner to apply for a Section 1332 state innovation waiver and/or federal funds, notify legislative committees of federal approval/denial decisions, and complete a study by the end of the second full year evaluating program effects on consumers with premium tax credits.

• Automatically repeals the program on September 1, 2023, unless the federal waiver or funding is approved, in which case only that provision repeals upon approval.