Date: 03/21/2013
Final
BILL SUMMARY for HB13-1245
HOUSE COMMITTEE ON HEALTH, INSURANCE & ENVIRONMENT
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03:35 PM -- House Bill 13-1245
Representative McCann presented House Bill 13-1245 concerning funding mechanisms for the Colorado Health Benefit Exchange (exchange). The bill creates two funding mechanisms to support the operation of the exchange, including:
- a fee assessed on health insurers operating in the individual and small group markets; and
- a premium tax credit to encourage contributions to the health exchange from insurance carriers.
The Colorado Health Benefit Exchange Board of Directors may assess a fee on small group and individual market health insurance carriers beginning on January 1, 2014. The fee is limited to $1.80 per month per health benefit plan on carriers in the individual market and per month per policyholder on carriers in the small group market. The Commissioner of Insurance is required to promulgate rules for the collection and assessment of the fee on carriers.
The bill creates a tax credit against the premium tax owed by insurance carriers that make a contribution of funds to the exchange. The tax credit is not capped and may be claimed by a carrier against its quarterly premium tax payment beginning in the 2014 tax year. To claim the credit, a carrier must follow the rules promulgated by the Commissioner of Insurance and complete the specified process for becoming a qualified taxpayer.
Representative McCann discussed amendment L.006 (Attachment G), but stated additional amendments are necessary so the amendment would not be offered.
130321 AttachG.pdf
03:42 PM -- Gretchen Hammer and Patty Fontneau, Colorado Health Benefit Exchange, testified in support of the bill. Ms. Hammer discussed the Colorado Health Benefit Exchange and the multi-revenue strategy of the exchange. Ms. Fontneau discussed the funding mechanism outlined in the bill, and state that the bill is only a piece of the self-sufficiency plan of the exchange. Ms. Fontneau responded to questions about the overall look of the exchange for the next two to three years, the cost comparison to states planning to participate in the federally operated exchange, and how adverse selection is being addressed by the exchange.
03:57 PM
Representative Primavera stated that Lacey Burman, Foundation of Families, had to leave, but expressed support of the bill.
03:57 PM -- Tony Gagliardi, National Federation of Independent Business, testified on the bill. He stated the if Colorado would have defaulted to the federal model it would have brought much higher costs, and stated that he did not want to state a position on the bill until all of the amendments have been presented. He discussed that any funding source for the exchange must address choice, competition, and cost-effectiveness.
03:59 PM -- Marc Reece, Colorado Association of Health Plans, testified on the bill. He discussed adverse selection protections included in the exchange. Mr. Reece responded to questions about how the exchange will address health costs and cost-shifting that occurs in the health care system.
04:07 PM -- Travis Berry, Colorado Competitive Council, testified on the bill. He discussed cost-shifting in the health care system and the assessment outlined in the bill. Mr. Berry responded to questions about the involvement of stakeholders in drafting amendments to the bill.
04:12 PM -- Debra Judy, Colorado Consumer Health Initiative, and George Lyford, Colorado Center on Law and Policy, testified on the bill. Ms. Judy discussed the involvement of the Colorado Consumer Health Initiative with the Colorado Health Benefit Exchange. Mr. Lyford stated the entire state stands to benefit from the success of the exchange. He stated he is in support of the concept of the bill and will work with the sponsor on amendments.
04:17 PM
Representative McCann requested that the bill be laid over for amendments and final action. Representative Primavera laid the bill over to a future date and adjourned the committee.