(1) The general assembly finds and declares that:
The state, carriers, and hospitals share a common commitment to ensuring all Coloradans have access to affordable health care coverage because access to coverage improves health outcomes and provides financial security for Coloradans;
Hospitals within the state incur the costs of uncompensated care to uninsured andunderinsured populations;
The economic downturn due to COVID-19 and its impacts on group and individualhealth care coverage in the state creates economic challenges for carriers from the potential lost revenue if people drop insurance coverage;
This part 12 is enacted to provide the following services and benefits to carriers:
Reducing the number of Coloradans who lack health care coverage by helping
Coloradans to maintain consistent coverage;
Providing stability in the insurance market;
Reducing the movement of individuals between insured and uninsured status;
Offsetting the costs carriers would otherwise pay for covered persons' high medicalcosts so that premiums are set at more affordable levels; and
Creating a healthier risk pool for all carriers by establishing a path for consistentcoverage for individuals; and
(e) This part 12 is enacted to provide the following services and benefits to hospitals:
Reducing the amount of uncompensated care provided by hospitals;
Reducing the need of providers to shift costs of providing uncompensated care toother payers; and
Expanding access to high-quality, affordable health care for low-income and uninsured Coloradans.
(2) The general assembly further finds and declares that, consistent with the determination of the Colorado supreme court in Nicholl v. E-470 Public Highway Authority, 896 P.2d 859 (Colo. 1995), the power to impose taxes is inconsistent with enterprise status under section 20 of article X of the state constitution, and the health insurance affordability fees and special assessments charged and collected by the health insurance affordability enterprise are fees, not taxes, because the fees and assessments are imposed for the specific purpose of allowing the enterprise to defray the costs of providing the business services specified in section 10-16-1204 (1)(a) to the carriers and hospitals that pay the fees and assessments and are collected at rates that are reasonably calculated based on the benefits received by those carriers and hospitals.
Source: L. 2020: Entire part added, (SB 20-215), ch. 201, p. 986, § 1, effective June 30. 10-16-1203. Definitions. As used in this part 12, unless the context otherwise requires:
"Board" means the health insurance affordability board created in section 10-161207.
"Children's basic health plan" has the meaning set forth in section 25.5-8-103 (2).
"Enterprise" means the Colorado health insurance affordability enterprise created insection 10-16-1204.
"Federal poverty line" has the same meaning as "poverty line", as defined in 42
U.S.C. sec. 9902 (2).
"Fee" means the health insurance affordability fee established and assessed pursuantto section 10-16-1205.
"Fund" means the health insurance affordability cash fund created in section 10-161206.
"Household income" has the same meaning as set forth in 26 U.S.C. sec. 36B (d)(2) of the federal "Internal Revenue Code of 1986", as amended.
"Medicaid" means federal insurance or assistance as provided by Title XIX of thefederal "Social Security Act", as amended, and the "Colorado Medical Assistance Act", articles 4, 5, and 6 of title 25.5.
"Medicare" means federal insurance or assistance provided by the "Health Insurancefor the Aged Act", Title XVIII of the federal "Social Security Act", as amended, 42 U.S.C. sec. 1395 et seq.
"Premium tax credit" means the refundable tax credit available pursuant to the federal act to assist certain individuals in purchasing a health benefit plan on the exchange.
"Public benefit corporation" means a public benefit corporation formed pursuant topart 5 of article 101 of title 7 that is organized and operated by the exchange pursuant to section 10-22-106 (3) for the purpose of administering and operating a subsidy to reduce the costs of health care coverage offered under a state-subsidized individual health coverage plan.
"Qualified individual" means an individual, regardless of immigration status, who:
Is a Colorado resident;
Has a household income of not more than three hundred percent of the federal poverty line; and
Is not eligible for the premium tax credit, medicaid, medicare, or the children's basichealth plan.
"Reinsurance program" means the Colorado reinsurance program created in part 11 of this article 16.
"Reinsurance program cash fund" means the reinsurance program cash fund createdin section 10-16-1107.
"State-subsidized individual health coverage plan" means a subsidized individualhealth coverage plan offered by carriers to qualified individuals through the public benefit corporation.
Source: L. 2020: Entire part added, (SB 20-215), ch. 201, p. 987, § 1, effective June 30.