Second Regular Session Sixty-ninth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 14-0529.01 Kristen Forrestal x4217HOUSE BILL 14-1192 HOUSE SPONSORSHIP Joshi, Saine, Humphrey, Buck, Everett, Holbert, Nordberg, Sonnenberg, Wilson, Wright SENATE SPONSORSHIP Lundberg, Harvey, Grantham, Hill, Marble, Baumgardner, Lambert, Renfroe House Committees Senate Committees Public Health Care & Human Services Health, Insurance, & Environment A BILL FOR AN ACT Concerning the repeal of the "Colorado Health Benefit Exchange Act". Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://www.leg.state.co.us/billsummaries.) In 2010, pursuant to the enactment of federal law that allowed each state to establish a health benefit exchange option through state law or opt to participate in a national exchange, the general assembly enacted the "Colorado Health Benefit Exchange Act" (act). The act created the state exchange, a board of directors (board) to implement the exchange, and a legislative health benefits exchange implementation review committee to make recommendations to the board. The bill repeals the act, effective January 1, 2015. The bill requires the state treasurer to transfer any unencumbered moneys that remain in the exchange to the general fund. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, add 10-22-112 as follows: 10-22-112. Repeal of article - transfer of funds. (1) This article is repealed, effective January 1, 2015. (2) On January 1, 2015, the board shall transfer any unencumbered moneys that remain in the exchange to the state treasurer, who shall transfer it to the general fund. SECTION 2. In Colorado Revised Statutes, 10-8-536, amend (2) and (3) as follows: 10-8-536. Cessation of program coverage. (2) On or before March 31, 2015, the board of directors shall make a final disposition of all funds remaining in any account of the program. The board shall first transfer twenty-five percent of the remaining funds to the nonprofit unincorporated public entity created in article 22 of this title. The board shall then transfer the amount remaining to a Colorado nonprofit foundation selected by the board, with specific instructions that the funds be distributed statewide for the purposes of promoting access to health care and improving health outcomes for populations in Colorado with high health care needs. The board shall promptly give notice of the transfer to the division of insurance. (3) Loss of coverage under the CoverColorado program under paragraph (a) of subsection (1) of this section is a loss of minimum essential coverage for purposes of enrollment in the Colorado health benefit exchange, created under article 22 of this title. Loss of coverage under the CoverColorado program under paragraph (a) of subsection (1) of this section is an involuntary loss or termination of existing creditable coverage for the purposes of qualifying a participant for special enrollment in an individual or group health plan in the state of Colorado. SECTION 3. In Colorado Revised Statutes, 10-16-102, repeal (26) as follows: 10-16-102. Definitions - repeal. As used in this article, unless the context otherwise requires: (26) "Exchange" means the Colorado health benefit exchange created in article 22 of this title. SECTION 4. In Colorado Revised Statutes, 10-16-105.7, amend (3) (a) (II) (C) and (3) (c); and repeal (3) (a) (II) (E) as follows: 10-16-105.7. Health benefit plan open enrollment periods - special enrollment periods - rules. (3) (a) (II) A triggering event occurs when: (C) An individual's enrollment or nonenrollment in a health benefit plan is unintentional, inadvertent, or erroneous and is the result of an error, misrepresentation, or inaction of the carrier, or producer; or exchange established pursuant to article 22 of this title; (E) The exchange established pursuant to article 22 of this title determines an individual to be newly eligible or newly ineligible for the federal advance payment tax credit or cost-sharing reductions available through the exchange pursuant to federal law; (c) The commissioner shall adopt rules in accordance with federal law for the implementation of this section. The commissioner may adopt rules to allow individuals enrolled in a health benefit plan through an exchange established under article 22 of this title to enroll in or change from one health benefit plan to another under circumstances specified in the rules. SECTION 5. In Colorado Revised Statutes, 10-16-107, amend (5) (c) (I) and (5) (c) (II) as follows: 10-16-107. Rate filing regulation - benefits ratio - rules. (5) (c) (I) A carrier shall consider all individuals in all individual health benefit plans, other than grandfathered health benefit plans, offered by the carrier including those individuals who do not enroll in the plans through an exchange established under article 22 of this title, to be members of a single risk pool. (II) A carrier shall consider all covered persons in all small employer health benefit plans, other than grandfathered health benefit plans, offered by the carrier including those covered persons who do not enroll in the plans through an exchange established under article 22 of this title, to be members of a single risk pool. SECTION 6. In Colorado Revised Statutes, 10-16-119, amend (3) (a) (IV) as follows: 10-16-119. Requirements for excess loss or stop-loss health insurance used in conjunction with self-insured employer benefit plans under the federal "Employee Retirement Income Security Act" - data collection 2013-18 - rules - repeal. (3) (a) For calendar years 2013 through 2018, an insurer that sells excess loss or stop-loss health insurance policies shall file with the commissioner annually, in the form and manner required by the commissioner by rule, information including the following: (IV) The source of prior coverage for the groups specified in subparagraph (I) of this paragraph (a), including: (A) Employers previously self-insured with excess loss or stop-loss health insurance coverage; (B) Employers previously self-insured without excess loss or stop-loss health insurance coverage; and (C) Employers previously not offering coverage; and (D) Groups previously fully insured outside the Colorado health benefit exchange, created in article 22 of this title; and (E) Groups previously fully insured inside the Colorado health benefit exchange, created in article 22 of this title; and SECTION 7. Act subject to petition - effective date. This act takes effect at 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly (August 6, 2014, if adjournment sine die is on May 7, 2014); except that, if a referendum petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in November 2014 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.