Colorado Democratic Gov. Jared Polis signed a bill in early June to move forward with funding for the state’s health insurance affordability efforts.
Colorado’s health insurance affordability enterprise — which collects fees from health plan carriers and hospitals to support the individual market — can issue bonds to generate up to $100 million, beginning Jan. 1, 2027. This amount may be lowered based on reinsurance savings. The law also establishes a premium reduction target of 18% for the reinsurance program.
Separately, by June 30, the state treasurer will allocate $40 million from the marijuana tax cash fund to the health insurance affordability cash fund.
Starting in 2027, the commissioner can also grant premium tax credits totaling up to $9 million per year to insurers that contribute to the enterprise.
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