Colorado Lawmakers Propose Measure to Mitigate Rising Health Insurance Premiums Amid Federal Tax Credit Expiration
Colorado Lawmakers Seek to Mitigate Rising Health Insurance Premiums Amid Federal Tax Credit Expiration
DENVER — As health insurance premiums in Colorado are projected to rise sharply next year, state lawmakers are stepping in with a proposed measure aimed at easing the financial burden for hundreds of thousands of residents who rely on the individual market for coverage.
The urgency of the situation has been underscored by the experiences of Coloradans like Chelsey Baker-Hauck, who has been grappling with long COVID since 2020 while also caring for her husband, who is battling cancer. “I wake up every day thinking about it,” Baker-Hauck shared. “I go to sleep every day thinking about it.”
With Colorado health insurers proposing nearly 30% premium increases—potentially even higher in rural areas—Baker-Hauck fears that her family could be pushed to the brink of financial ruin. “My greatest fear is losing my home,” she lamented. “We’ve already emptied our savings. We’ve already emptied my husband’s retirement fund. We’re really out of options.”
The looming expiration of enhanced federal tax credits, which have helped lower premium costs, adds to the anxiety. These credits are set to end at the close of the year, following Congress’s decision not to renew them during the passage of President Donald Trump’s One Big Beautiful Act (H.R.1). If the Colorado Division of Insurance approves the proposed rate hikes, approximately 300,000 Coloradans could see their healthcare costs skyrocket by hundreds or even thousands of dollars.
State regulators have warned that as many as 100,000 residents could lose their insurance altogether if these changes take effect. In response, a group of Democratic lawmakers has introduced HB25B-1006 during a special legislative session, aiming to tap into $113 million from tax credit pre-sales and other sources to mitigate the impact. They assert that this measure could reduce the average premium increase from 28% to 20%.
“Coloradans cannot afford these insurance premium hikes,” said State Senator Kyle Mullica. “We must act now to shield families from these unaffordable premium increases and keep Coloradans insured.”
The bill has already passed the Colorado House of Representatives and received preliminary approval in the Senate. It also aims to bolster OmniSalud, a program designed to connect individuals who no longer qualify for Medicaid with affordable coverage.
However, not all lawmakers are on board. Republican leaders have expressed skepticism about the proposed funding solutions, suggesting that the state should cut excess spending elsewhere to address healthcare costs. State Sen. Cleave Simpson, the Republican minority leader, voted against the bill, believing that Congress will ultimately find a solution.
“I have faith in my delegation and the Congress to actually do something in the right space and scope for Coloradans,” Simpson stated.
As the clock ticks down to the expiration of the federal tax credits, the fate of many Coloradans hangs in the balance. Baker-Hauck remains hopeful but acknowledges the harsh reality: “If I want to stay alive, I have to have health insurance.”
With the stakes higher than ever, all eyes are on Colorado lawmakers as they navigate this critical issue, striving to protect the health and financial well-being of their constituents.
