Second Regular Session Sixty-fifth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 06-0140.01 Kristen Forrestal SENATE BILL 06-017 SENATE SPONSORSHIP Keller, and Shaffer HOUSE SPONSORSHIP Green, and Boyd Senate Committees House Committees Health and Human Services A BILL FOR AN ACT Concerning the expansion of the availability of affordable health care coverage for Coloradans, and, in connection therewith, creating the healthy business healthy people program and making an appropriation therefor. Bill Summary (Note: This summary applies to this bill as introduced and does not necessarily reflect any amendments that may be subsequently adopted.) Interim Committee on Health Insurance. Creates the healthy business healthy people program ("program") to expand the availability of health care coverage to qualifying Colorado small employers and individuals. Specifies that the program will be administered by the board of directors of CoverColorado ("board of directors") and an expanded board consisting of 6 members, 2 of whom will be appointed by the governor, subject to senate confirmation, and 4 of whom will be appointed by the president of the senate and speaker of the house of representatives. Specifies that the expanded board shall have all powers necessary to implement the reinsurance portion of the program, and the board of directors shall have all powers necessary to implement the premium subsidy portion of the program. Establishes criteria for the small employers and individuals to be eligible for coverage under the program. For small employer group plans, creates a reinsurance arrangement under which eligible small employer plans would be eligible to receive reimbursement for certain amounts of claims paid for eligible insureds. For eligible individuals, creates a premium subsidy plan to pay part of the premiums normally charged for plans offered by CoverColorado. Creates the healthy business healthy people fund ("fund") in the state treasury to provide moneys for reinsurance reimbursements and premium subsidies for the program. Requires small employer health insurance entities to issue qualifying small employer plans to qualifying small employers. In addition, requires small employer carriers to apply a rating factor to health benefit plans to account for reinsurance reimbursement payments through the program. Appropriates $15 million from the general fund exempt account to establish the healthy business healthy people fund. Makes appropriations from the fund to the division of insurance for the implementation of this act. Extends the requirement that small employer carriers issue a standard and basic plan until July 1, 2007. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. Article 8 of title 10, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW PART to read: PART 7 HEALTHY BUSINESS HEALTHY PEOPLE PROGRAM 10-8-701. Short title. This part 7 shall be known and may be cited as the "Healthy Business Healthy People Program Act". 10-8-702. Legislative declaration. (1) The general assembly hereby finds, determines, and declares that: (a) All Colorado citizens deserve to have access to affordable, comprehensive health insurance and quality health care; (b) Individuals, families, and small businesses deserve to have predictable, stable costs for health care from one year to the next; (c) Small businesses are the backbone of our economy and must not be asked to disproportionately bear the burden of providing health insurance; (d) Between 1996 and 2002, small business health insurance premiums increased more than eighty percent, both nationally and in Colorado; (e) Less than fifty percent of Colorado small businesses offer health insurance; (f) Most low-income working Coloradans who are not offered health insurance at the workplace and who have preexisting conditions cannot obtain coverage in the private market and cannot afford the high cost of coverage made available to uninsurable individuals through the CoverColorado program; (g) Reinsurance policies have been proven to lower the cost of insurance for small employers by providing additional coverage for those at highest risk; (h) The purpose of this part 7 is to make standardized, low-cost health insurance contracts available to qualifying small employers and qualifying individuals as defined in this part 7. This part 7 is designed to encourage small employers to offer health insurance coverage to their employees and also to make affordable coverage available to uninsured individuals whose employers do not provide group health insurance. 10-8-703. Definitions. As used in this part 7, unless the context otherwise requires: (1) "Administering carrier" means the carrier or third-party administrator designated in this part 7. (2) "Basic health benefit plan" means the basic health benefit plan promulgated by rule of the commissioner pursuant to section 10-16-105 (7.2), as such rule was effective on December 1, 2004. (3) "Board" means the board of directors for CoverColorado, created in section 10-8-505. (4) "Business group of one" shall have the same meaning as set forth in section 10-16-102 (6). (5) "Carrier" shall have the same meaning as set forth in section 10-16-102 (8). (6) "Commissioner" means the commissioner of insurance or the commissioner's designee. (7) "CoverColorado" means the program established in part 5 of this article. (8) "Expanded board" means the expanded board constituted pursuant to section 10-8-705. (9) "Group health plan" shall have the same meaning as set forth in section 10-16-105.5 (1) (a). (10) "Health benefit plan" shall have the same meaning as set forth in section 10-16-102 (21). (11) "Program" or "healthy business healthy people" means the healthy business healthy people program, including the administration and implementation of reinsurance and premium subsidies for the health benefit plans permitted under this part 7. (12) (a) "Qualifying individual" means a person: (I) Who meets the definition of an "eligible individual" for the CoverColorado program, as defined in section 10-8-503 (5); (II) Who does not have and has not had health insurance with benefits on an expense-reimbursed or prepaid basis during the twelve-month period immediately preceding the individual's application for reduced-price CoverColorado coverages under the program established by this part 7; (III) Whose employer does not provide group health insurance and has not provided group health insurance with benefits on an expense-reimbursed or prepaid basis covering employees during the twelve-month period immediately preceding the individual's application for reduced-price CoverColorado coverage under the program established by this part 7; (IV) Who resides in a household having a net household income that is no higher than an amount set by the expanded board; except that such amount shall not exceed three hundred fifty percent of the non-farm federal poverty level, as defined and updated by the United States department of health and human services, or the gross equivalent of such net income; and (V) Who applies for reduced-price CoverColorado coverage under the program established by this part 7 on or after January 1, 2007. (b) The requirements set forth in subparagraphs (II) and (III) of paragraph (a) of this subsection (12) shall not apply to an individual who had health insurance coverage during the immediately preceding twelve months if such coverage was terminated for any reason other than the voluntary termination of such coverage by the individual. (13) (a) "Qualifying small employer" means a small employer that has no more than five employees, at least two of whom earn annual wages of twenty-eight thousand dollars or less, or a business group of one whose net annual income from the business is twenty-eight thousand dollars or less, and that meets all of the following criteria: (I) At least one of the employees receiving annual wages of twenty-eight thousand dollars or less is eligible for and is offered qualifying plan coverage. (II) At least one of the employees described in subparagraph (I) of this paragraph (a) accepts the qualifying plan coverage offered to them. (III) The employer pays at least fifty percent of the premiums for employees covered under a qualifying plan. (IV) The employee contribution, in dollars, is the same for all covered employees. (b) The expanded board shall adjust the twenty-eight-thousand-dollar figure referred to in paragraph (a) of this subsection (13) periodically, but no more than once each year, to reflect increases or declines in the average wage rate in Colorado. (14) "Qualifying small employer plan" or "qualifying plan" means a basic health benefit plan or a standard health benefit plan that provides coverage through a health maintenance organization or preferred provider organization. (15) "Small employer" shall have the same meaning as set forth in section 10-16-102 (40). (16) "Small employer carrier" shall have the same meaning as set forth in section 10-16-102 (41). (17) "Standard health benefit plan" means the basic health benefit plan promulgated by rule of the commissioner pursuant to section 10-16-105 (7.2), as such rule was effective on December 1, 2004. 10-8-704. Healthy business healthy people program - creation - pilot program. (1) There is hereby created the healthy business healthy people program, which shall operate a pilot reinsurance program to lower the cost of health insurance for qualifying small businesses and a premium subsidy program for qualifying individuals. (2) The board and the expanded board shall operate the program. The program is an instrumentality of the state; except that the debts and liabilities of the program shall not constitute debts and liabilities of the state, and the program, the board, and the expanded board shall not be agencies of state government. (3) Funding for the program shall come from the healthy business healthy people fund, created in section 10-8-710. (4) The program shall operate as a five-year pilot program that shall terminate on December 31, 2011, unless extended or made permanent by the general assembly. (5) The program is not an entitlement program. The total number of individuals, small employers, and health benefit plans covered by the program shall not exceed the funding capacity of the moneys available. 10-8-705. Expanded board - powers and duties - recommendations from legislative interim committee created in Senate Joint Resolution 05-036. (1) (a) The expanded board shall consist of six members who have bookkeeping, accounting, or actuarial experience. Of such six members, one shall be a representative of small employer carriers, two shall be representatives of small employers with no more than five employees, two shall be employees of a small employer with five or fewer employees who is not a business group of one, and one shall be an insurance broker who sells both individual and small group health benefit plans in Colorado. (b) The small employer carrier member and insurance broker member shall be appointed by the governor with the consent of the senate. These two members shall serve for terms of four years; except that, of those members initially appointed, one shall serve for a term of two years. The governor shall appoint a qualified person to fill either position, should it become vacant, for the remainder of any unexpired term. (c) The small employer members shall be appointed by the president of the senate, and the employee members shall be appointed by the speaker of the house of representatives. These four members shall serve for terms of four years; except that, of those members initially appointed, the employee members shall serve for a term of three years. (2) The board and the expanded board shall be the governing bodies of the program. The expanded board shall have all powers necessary to implement the reinsurance portion of the program to lower the cost of health insurance for qualifying small businesses. The board shall have all the powers necessary to implement the premium subsidy portion of the program for qualifying individuals. In addition, the board and the expanded board shall have the specific authority for the portions of the program for which they have authority to: (a) Enter into such contracts as are necessary or proper to carry out the provisions and purposes of this part 7, including, without limitation, the authority to enter into contracts with appropriate administrative staff, consultants, and legal counsel and to select and contract with the administering carrier in accordance with section 10-8-706. In addition, the expanded board shall have the authority, with the approval of the commissioner, to enter into contracts with other states with similar plans for the joint performance of common administrative functions or with persons or other organizations for the performance of administrative functions. No contract entered into pursuant to this paragraph (a) shall be subject to article 103 of title 24, C.R.S. (b) Sue or be sued, including taking any legal action as necessary or proper on behalf of the program; (c) Take such legal action as necessary to avoid the payment of improper claims against the program or to defend the coverage provided by or through the program; (d) Establish appropriate rates for qualifying individuals who are eligible for a premium subsidy pursuant to section 10-8-709 and undertake any other actuarial functions appropriate to the operation of the program; (e) Establish such procedures and standards for the reinsurance of qualifying plans covering qualifying small employers, and of plans issued by CoverColorado that cover qualifying individuals, as may be appropriate to accomplish the purposes of this part 7. For the purposes of administering the reinsurance under the program, the expanded board may request the submittal of such reasonable documentation by qualifying plans concerning qualifying small employers and by qualifying individuals as it deems necessary. (f) Oversee the issuance of policies of insurance covering qualifying individuals and certificates or evidences of coverage in accordance with the requirements of this part 7; (g) Appoint appropriate legal, actuarial, and other committees as necessary to provide technical assistance in the operation of the program, policy development, and other contract design and in any other function within the authority of the program; (h) Borrow money to effect the purposes of this part 7; (i) Establish conditions and procedures for reinsuring risks under this part 7; (j) Establish procedures for the reasonable advance notice to interested parties of the agenda for meetings of the expanded board; (k) Accept and expend gifts, grants, and donations for operation of the program. Moneys from such gifts, grants, and donations shall be transmitted to the state treasurer, who shall credit the same to the healthy business healthy people fund created in section 10-8-710. (l) Develop procedures for handling and accounting for the funds and other assets of the program, including records of all financial transactions and an annual fiscal report to the commissioner; (m) Develop procedures for selection of an administering carrier as provided in section 10-8-706; (n) Develop procedures to establish and maintain public awareness of the program, including its eligibility requirements and enrollment procedures; (o) Develop procedures to ensure public knowledge concerning availability of the program; (p) Establish regular times and places for meetings of the board; (q) Develop procedures under which applicants and participants can report grievances to the board, which grievances shall be fairly and impartially considered, and administrative remedies for such grievances; and (r) Establish any other provisions necessary to implement the purposes of this part 7. (3) All applicants and participants reporting any grievance pursuant to paragraph (q) of subsection (2) of this section shall exhaust all administrative remedies as set forth by the expanded board before any such grievance may be the basis for legal action. The venue for any legal action involving the program shall be the city and county of Denver. Nothing in this subsection (3) shall prohibit the expanded board from requiring binding arbitration for the final adjudication of any grievance. (4) For any act performed within the course and scope of authority under this part 7, the board and the expanded board, the individual members of the expanded board, and the employees and agents of the board and the expanded board shall be entitled to the immunity granted pursuant to section 24-10-106, C.R.S., unless such act or omission constitutes willful and wanton misconduct. (5) Except as specifically provided in this part 7, the expanded board shall operate according to the same rules and procedures as the board. 10-8-706. Administering carrier. (1) The administering carrier shall perform all administrative, eligibility, and claims payment functions relating to the program, including: (a) Assuring timely payment of reimbursements of coverage to small employer carriers and reimbursements of coverage to CoverColorado for qualifying individuals pursuant to section 10-8-708, including: (I) Making available information relating to the proper manner of submitting claims for reimbursement of coverage; (II) Evaluating the eligibility of each claim for reimbursement of coverage pursuant to guidelines established by the board and the expanded board; (b) Submitting regular reports to the expanded board regarding the operation of the program. The frequency, content, and form of the reports shall be as determined by the board after consultation with the expanded board. (c) Determining the expense of administration and the paid and incurred losses for each year and reporting such information to the expanded board and the commissioner in a form and manner prescribed by the commissioner. (2) The board, in consultation with the expanded board, shall establish its own competitive bidding process to select a carrier or third-party administrator to serve as the administering carrier and to select one or more vendors to provide services that may be necessary to administer the program. The board, in consultation with the expanded board, shall evaluate bids submitted based on the criteria it establishes and shall not be subject to the provisions of article 103 of title 24, C.R.S., in making such selections. (3) The administering carrier shall serve for a period of three years, subject to removal for cause. At least one year prior to the expiration of the three-year period of service, the board shall invite all interested parties, including the current administering carrier, to submit bids to serve as the administering carrier for the ensuing two years of the pilot program. Selection of the administering carrier for the ensuing period shall be made at least six months prior to the end of the current three-year period. (4) The administering carrier shall be paid as provided for by the board and the expanded board. 10-8-707. Program - examination - financial report. (1) Not later than March 1, 2007, and by March 1 of each succeeding year, the board and the expanded board shall submit an audited financial report for the program for the preceding calendar year to the commissioner in a form provided or prescribed by the commissioner. (2) The financial status of the program shall be subject to examination by the commissioner or the commissioner's designee. Such examinations shall be conducted at least once every five years. (3) The board and the expanded board shall establish a competitive bidding process to select a third party to collect data on an ongoing basis and to use such data to evaluate the program. The evaluation of the program shall be submitted to the committees of the house of representatives and the senate that oversee business affairs and labor issues on or before March 1, 2011. The evaluation shall include data and analysis as determined by the board and the expanded board prior to the bidding process, but shall include an evaluation of the program's outcomes, including but not limited to program costs, the benefits to the recipients and the state, and any net fiscal savings. Payment for the cost of the program shall not exceed one hundred thousand dollars from the five percent of the healthy business healthy people fund allocated for administrative costs pursuant to section 10-8-710 (2) (a). 10-8-708. Healthy business healthy people reinsurance coverage - eligibility for reimbursement payments. (1) Health benefit plans eligible for reinsurance reimbursement payments under this part 7 shall be qualifying plans issued by small employer carriers authorized to issue health benefit plans under article 16 of this title. Each small employer carrier shall offer qualifying plans to qualified small employers for the duration of the program. (2) (a) Reinsurance reimbursement to carriers shall be made from the healthy business healthy people fund moneys earmarked for reinsurance for qualifying plans, pursuant to section 10-8-710. Such reimbursements shall be made, to the extent of funds available therefor, for claims paid by such carriers under qualifying plans. (b) Commencing on January 1, 2007, small employer carriers shall be eligible to receive reinsurance reimbursement for ninety percent of total claims paid between the amount of five thousand dollars, or such greater amount as shall be set by the expanded board before implementation of the program, and seventy-five thousand dollars in a calendar year for any insured covered under a qualifying plan. Reinsurance reimbursement payments shall only be available for coverage provided under managed care plans by network providers, except for emergency care. The five-thousand-dollar and seventy-five-thousand-dollar figures in this paragraph (b) shall be adjusted by the expanded board periodically, but no more than once each year, to reflect the inflation in medical care costs paid by carriers. (c) Claims shall be reported and reinsurance reimbursements shall be distributed on a quarterly basis. Claims shall be eligible for reimbursement only for the calendar year in which the claims are paid. Once claims paid on behalf of a covered insured equal or exceed seventy-five thousand dollars in a given calendar year, no further claims paid on behalf of such insured in that calendar year shall be eligible for reimbursement. (d) Each carrier shall submit a request for reinsurance reimbursement from the program on forms prescribed by the expanded board. The expanded board may require carriers to submit such claims data in connection with the reimbursement requests as it deems necessary to enable the expanded board to distribute moneys and oversee the operation of the program. (e) (I) The expanded board shall determine the total claims reimbursement amount for all carriers for the calendar year for which claims are being reported. (II) If the funds available for distribution for claims paid by all carriers during a calendar year exceed the total amount requested for reimbursement by all carriers during that same calendar year, any excess funds shall be carried forward and made available for distribution in the next calendar year. (III) Each carrier shall provide the expanded board with monthly reports of the total enrollment under qualifying plans. The reports shall be in a form prescribed by the expanded board. (IV) The expanded board shall separately estimate the per-insured annual cost of total claims reimbursement for qualifying plans based upon available data and appropriate actuarial assumptions. Upon request, each carrier shall furnish claims experience data to the expanded board for use in such estimations. (V) The expanded board shall determine total eligible enrollment under qualifying plans. The total eligible enrollment shall be determined by dividing the total moneys available for distribution from the healthy business healthy people fund by the estimated per-insured annual cost of total claims reimbursement from the fund. (VI) The expanded board shall suspend the enrollment of new insureds if it determines that the total enrollment reported by all carriers exceeds the total eligible enrollment, thereby resulting in anticipated annual expenditures from the healthy business healthy people fund in excess of the total amount available for distribution. (VII) The expanded board shall provide carriers with notification of any enrollment suspensions as soon as practicable after receipt of all enrollment data. (VIII) If, at any point during a suspension of enrollment, the expanded board determines that funds are sufficient to provide for the addition of new enrollments, the expanded board may reactivate new enrollments and notify all carriers that enrollments may again commence. (IX) The suspension of enrollments shall not preclude the addition of new employees of an employer already covered, or new dependents of employees already covered, under qualifying plans. 10-8-709. Healthy business healthy people premium subsidy program - eligibility for subsidy payments. (1) The board shall establish a premium subsidy program for qualified individuals who apply for coverage on or after January 1, 2007, under a CoverColorado benefit plan designated by the board. (2) The premium subsidy may be set on an income-based, sliding fee scale; except that in no event shall a qualified individual pay more than eighty percent of the premium normally charged by CoverColorado. (3) Premium subsidies shall be paid from healthy business healthy people fund moneys earmarked for subsidies for qualifying individuals. In the event that an assessment on carriers is triggered under section 10-8-530 (1.5), carriers shall not be assessed for any claims costs for qualifying individuals. Instead, such costs shall be paid for out of healthy business healthy people fund moneys earmarked for subsidies for qualifying individuals. (4) Before implementing the premium subsidy program, the board shall develop a table of proposed premium subsidies and shall hold a public hearing and take comments on the proposed table of subsidies. (5) (a) The board shall determine the total premium subsidies for the calendar year for which subsidies are paid. (b) If the funds available for distribution for premium subsidies paid during a calendar year exceed the total amount of subsidies during that same calendar year, any excess funds shall be carried forward and made available for distribution in the next calendar year. (c) The board shall separately estimate the per-insured annual cost of all subsidies for designated CoverColorado plans based upon available data and appropriate actuarial assumptions. (d) The board shall determine the total eligible enrollment under designated CoverColorado plans. The total eligible enrollment shall be determined by dividing the amount of moneys available for distribution from the healthy business healthy people fund for premium subsidies by the estimated per-insured annual cost of all premium subsidies from the fund. (e) The board shall suspend the enrollment of new insureds in designated CoverColorado plans if it determines that the total enrollment reported by CoverColorado exceeds the total eligible enrollment, thereby resulting in anticipated annual expenditures from the healthy business healthy people fund in excess of the moneys available for distribution. (f) If, at any point during a suspension of enrollment, the board determines that funds are sufficient to provide for the addition of new enrollments, the board may again accept new enrollments. (g) The suspension of enrollment in designated CoverColorado plans shall not preclude the addition of new dependents of individuals already covered under such plans. 10-8-710. Healthy business healthy people fund - creation. (1) (a) There is hereby created in the state treasury the healthy business healthy people fund, also referred to in this section as the "fund". The fund shall consist of moneys credited thereto pursuant to this part 7. (b) In fiscal year 2006-07, and each of the four fiscal years thereafter, if the most recent legislative council staff economic and revenue forecast estimates that the general fund exempt account, created in section 24-77-103.6 (2), C.R.S., will receive more than one hundred fifteen million dollars, fifteen million dollars of the moneys in such general fund exempt account shall be appropriated to the healthy business healthy people fund created in this subsection (1). (c) All moneys appropriated to the healthy business healthy people fund shall be used as provided in this part 7 and shall not be deposited in or transferred to the general fund of this state or to any other fund. Notwithstanding any provision of section 24-36-114, C.R.S., to the contrary, all interest derived from the deposit and investment of moneys in the fund shall be credited to the fund. (2) (a) Of the moneys in the fund, no more than five percent shall be used for program administrative costs, including administrative costs of the division of insurance. (b) (I) Of the moneys remaining in the fund after the payment of program administrative costs, two-thirds shall be used for reinsurance payments under section 10-8-708 and one-third shall be used for CoverColorado premium subsidies under section 10-8-709. (II) The state treasurer shall transmit to CoverColorado, for use as specified by the board and the expanded board pursuant to this part 7, such amounts as appropriated to the healthy business healthy people fund. SECTION 2. 10-8-503 (17.3), Colorado Revised Statutes, is amended to read: 10-8-503. Definitions. As used in this part 5, unless the context otherwise requires: (17.3) "Program" or "CoverColorado" means CoverColorado and its administration and implementation of the health benefit plans permitted under this part 5 and part 7 of this article. SECTION 3. 10-8-530 (1), Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW PARAGRAPH to read: 10-8-530. Funding of program - repeal. (1) The program shall be funded by the following: (f) Moneys transmitted pursuant to section 10-8-710 (2). SECTION 4. 10-16-105, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SUBSECTION to read: 10-16-105. Small group sickness and accident insurance - guaranteed issue - mandated provisions for basic and standard health benefit plans - rules - definitions. (16) (a) As used in this subsection (16): (I) "Qualifying small employer" shall have the same meaning as set forth in section 10-8-703 (13). (II) "Qualifying small employer plan" shall have the same meaning as set forth in section 10-8-703 (14). (b) On and after January 1, 2007, each small employer carrier shall issue qualifying small employer plans to qualifying small employers who apply for coverage pursuant to part 7 of article 8 of this title. (c) On and after January 1, 2007, in addition to any other rating factor allowed under this section, small employer carriers shall apply a rating factor for health benefit plans issued to qualifying small employers under the healthy business healthy people program pursuant to part 7 of article 8 of this title. (d) On and after January 1, 2007, the premiums for qualifying small employer plans shall factor in the availability of reimbursement from the healthy business healthy people program. (e) The determination of whether a small employer is a qualifying small employer shall be made at the time a small employer applies for coverage, and shall be redetermined annually at renewal. A small employer that no longer qualifies as a qualifying small employer at renewal may continue on the same coverage, but such coverage shall not be eligible for reinsurance, and the small employer carrier shall adjust the small employer's renewal rate accordingly. The commissioner shall promulgate rules setting forth the process, including any necessary forms, that small employer carriers shall use to determine whether a small employer applying for coverage under a qualifying small employer plan meets the definition of a qualifying small employer under section 10-8-703 (13). (f) On and after January 1, 2007, the commissioner shall annually publish sample rates for qualifying small employer plans offered pursuant to part 7 of article 8 of this title. SECTION 5. 10-16-107, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SUBSECTION to read: 10-16-107. Rate regulation - approval of policy forms - benefit certificates - evidences of coverage - loss ratio guarantees - disclosures on treatment of intractable pain - definitions. (1.9) (a) As part of its review of small employer health benefit plan rate filings, the division shall ensure that savings for small employer carriers from the availability of reinsurance through the healthy business healthy people program for qualifying small employer plans under part 7 of article 8 of this title is passed along to qualifying small employers in the form of lower rates. (b) As used in this subsection (1.9): (I) "Qualifying small employer" shall have the same meaning as set forth in section 10-8-703 (13). (II) "Qualifying small employer plan" shall have the same meaning as set forth in section 10-8-703 (14). SECTION 6. Appropriation. (1) In addition to any other appropriation, there is hereby appropriated, out of any moneys in the general fund exempt account created in section 24-77-103.6 (2), Colorado Revised Statutes, not otherwise appropriated, to the healthy business healthy people cash fund created in section 10-8-710 (1) (a), Colorado Revised Statutes, for the fiscal year beginning July 1, 2006, the sum of fifteen million dollars ($15,000,000). (2) In addition to any other appropriation, there is hereby appropriated, out of any moneys in the healthy business healthy people fund created in section 10-8-710, Colorado Revised Statutes, not otherwise appropriated, to the department of regulatory agencies, for allocation to the division of insurance, for the fiscal year beginning July 1, 2006, the sum of ten thousand six hundred forty-four dollars ($10,644), or so much thereof as may be necessary, for the implementation of this act. SECTION 7. Safety clause. The general assembly hereby finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, and safety.