House Advances Bill to Limit Premium Increases, Protect Access to Healthcare

DENVER, CO — The House today advanced legislation on a preliminary vote to blunt health insurance rate increases and reduce the number of Coloradans who could lose their health insurance coverage due to Congress’ continued refusal to extend premium tax credits.

“With Congress’s failure to extend premium tax credits, we are doing what we can to prevent premiums from skyrocketing and protect access to healthcare for Coloradans,” said Rep. Kyle Brown, D-Louisville. “If we do not act, Congress’s failure will lead premiums to jump, and more Coloradans will lose coverage, increasing costs for everyone with insurance. Until Congress steps up, this bill helps keep Coloradans insured. We’re all just one illness or accident away from unexpected medical costs – and this bill keeps premium costs down.” 

“While only Congress can fully address premium hikes, we’re building on our work to prevent premium increases and safeguard access to life-saving health care,” said Rep. Lindsay Gilchrist, D-Denver. “Without this bill, everyone’s costs will go up. Coloradans will experience massive premium increases, more Coloradans will lose insurance and care altogether, and our safety net providers and emergency rooms will become strained. While this bill is only a one-year fix, we need to protect healthcare coverage for Coloradans now while we continue working toward a long-term solution.” 

SB26-178 would save Coloradans money and maintain health insurance coverage. SB26-178 would only apply for the 2027 plan year. 

This bill comes after last year’s HB25B-1006, also sponsored by Representatives Brown and Gilchrist, which softened health insurance rate increases and helped prevent 70,000 Coloradans from losing their health care plan in the 2026 plan year. Without SB26-178, Coloradans who purchase their own health insurance will experience an average premium increase of $2,000 annually, with Colorado families on the Western Slope experiencing an average premium increase of $4,000 annually. Additionally, 22,000 Coloradans could lose their health insurance coverage. 

These bills come in response to Congressional Republicans’ continued refusal to reinstate the enhanced premium tax credits for people who purchase health insurance through the Affordable Care Act marketplace. To sustain these affordable health insurance programs, SB26-178 would invest one-time funds in the Health Insurance Affordability Enterprise (HIAE). Funding would come from a $40 million transfer from reserve funds held in the Marijuana Tax Cash Fund and up to $100 million in revenue bonds issued by the HIAE. Space in the reserve has been freed up by the value of the renovated Capitol Annex building.

The bill would also allow for the HIAE to invest enterprise funds and would restructure a tax credit incentive to boost donations to the HIAE. Using these new funds and tools, the bill would:

• Boost funds in the health insurance affordability cash fund to blunt serious increases in insurance premiums and protect coverage, 

• Implement cost-savings measures to aim to reduce statewide average premium increases by eighteen percent, and

• Support existing affordability programs, including on-exchange subsidies and the OmniSalud program, to maintain or expand coverage.