Time:07:33 AM to 08:37 AM
Place:HCR 0112
This Meeting was called to order by
Senator Aguilar
This Report was prepared by
Dave DeNovellis
X = Present, E = Excused, A = Absent, * = Present after roll call
Bills Addressed: Action Taken:
COHBE Grant Proposal PresentationWitness Testimony and/or Committee Discussion Only

07:34 AM -- Colorado Health Benefit Exchange Grant Proposal Presentation

Senator Aguilar, chair, called the meeting to order.

Patty Fontneau, executive director of the Colorado Health Benefit Exchange, now known as Connect for Health Colorado, presented the exchange's most recent grant proposal. She gave background on the exchange and its previous grants. Ms. Fontneau stated that the new grant would provide funding for all aspects of the online marketplace, customer support systems, and a public outreach campaign. She provided the committee with copies of the grant proposal draft and the grant summary (Attachments A and B). Ms. Fontneau noted that the exchange will be operational in October 2013 and that the Level 2 grant will fund operations of the exchange during its first year. She explained that the exchange is allowed to request grants from the federal government through 2016. Ms. Fontneau discussed establishment grants awarded to other states.

130507 AttachA.pdf130507 AttachA.pdf130507 AttachB.pdf130507 AttachB.pdf

07:45 AM

Senator Roberts discussed her concerns about the amount of the grant request and the time frames in which the committee received the grant proposal. Senator Lundberg discussed testimony in the Senate Health and Services Committee regarding House Bill 13-1245 concerning funding for the exchange. Representative Gardner stated that he was disappointed in the amount of the request. Ms. Fontneau responded to questions regarding how the exchange would be funded should federal funding cease to be available. Representative Gardner asked how much of the grant is designated for implementation activities, for sustainability, and for nonessential enhancements. Ms. Fontneau discussed the estimated implementation and operational costs through 2018.

08:04 AM

Gretchen Hammer, chair of the exchange's board of directors, responded to questions from Senator Roberts regarding the interaction between the board and the exchange's finance committee. She stated that the board has a responsibility to see that sufficient funds are available initially to ensure long-term efficiency and sustainability. Ms. Fontneau stated that the federal grants have no additional stipulations other than complying with state and federal law. Rob Ruiz-Moss, chair of the exchange's finance committee, discussed the necessity of having capital on hand and issues with the marketing and technology build out for something that has not been done before.

08:15 AM

Ms. Fontneau discussed the different cost estimates regarding the exchange with the committee. Mr. Ruiz-Moss commented on the availability of federal funds to Colorado and other states. Representative Stephens asked for estimates of the number of customers the exchange expects to serve. Ms. Fontneau discussed premium estimates and noted that the estimates will be firmer after carriers submit plans to the Division of Insurance in May.

08:26 AM

Ms. Fontneau commented on the exchange's timeline concerning the recent grant proposal. Senator Aguilar requested that committee members submit comments on the grant to Ms. Fontneau by Monday, May 13. Ms. Fontneau discussed education and public outreach efforts with consumers and small businesses with Representative McCann.

08:37 AM

The committee adjourned.