The Colorado Division of Insurance announced on June 3 the signing into law of two healthcare bills, SB26-178 and SB26-167, by Governor Polis. The legislation is intended to help keep health insurance affordable for Coloradans and address rising costs in the individual market.
SB26-178 allocates $140 million to the Health Insurance Affordability Enterprise for Plan Year 27. This funding aims to prevent significant increases in health insurance costs for individuals who purchase their own coverage. According to the Division, these cost hikes are a result of Congress not extending enhanced premium tax credits that expired at the end of last year. While Colorado provides state-level subsidies through measures like last year’s HB25B-1006, officials say no state can fully compensate for the loss of federal tax credits.
SB26-167 requires that prescription drugs purchased directly from pharmacies or through direct-to-consumer platforms count toward out-of-pocket maximums or cost-sharing requirements in individual, small group, and large group health plans. Previously, insurers were not required to include these consumer-paid drug costs when calculating out-of-pocket totals.
“These pieces of legislation, now signed into law, will improve the healthcare landscape for hundreds of thousands of Coloradans. Without passage of SB26-178, health insurance costs for hundreds of thousands of Coloradans would surge due to the federal government’s inability to come together to extend the enhanced premium tax credits that people depend on. This law will ensure that more Coloradans will be able to keep their healthcare. SB26-167 will allow consumers to take advantage of cheaper prescription drugs offered directly through pharmacies and direct-to-consumer platforms and get credit towards their out-of-pocket maximum and cost-sharing requirements in their health plans. There is no reason consumers’ health care plans shouldn’t incorporate those costs. I’m proud that we supported these bills through the legislative process, and I thank the bill sponsors and the Governor for crafting and implementing these important policies,” said Colorado Insurance Commissioner Michael Conway.
The Colorado Division of Insurance regulates insurance across Colorado while providing resources such as license verification tools and complaint filing options for consumers seeking protection in insurance matters, according to the official website.
