HB22-1198: Medical Expense Sharing Programs

• Establishes regulatory requirements for medical expense sharing programs in Colorado, defined as programs that facilitate sharing of medical expenses among members using member contributions without transferring risk or legal obligation to pay to the organization or members.

• Requires organizations to provide written notice stating the program is not insurance, that payment is voluntary, that some expenses may be excluded, and that members remain personally responsible for their medical bills.

• Mandates monthly financial reporting to members, annual independent audits, annual public reporting to the attorney general, and prohibition on deceptive practices or operating under different names than reported.

• Authorizes the attorney general to issue noncompliance notices and seek injunctions or administrative penalties of up to $250 per day if violations continue beyond 45 days.

• Exempts programs from Colorado insurance laws if they transfer funds directly from members and the operating organization is a federally tax-exempt 501(c)(3) nonprofit that does not own the member funds; includes religious exercise protections for faith-based sharing programs.