HB19-1168: (McCluskie & Rich/Donovan & Rankin) State Innovation Waiver Reinsurance Program

Originally Posted: April 19, 2019
Last Updated: June 5, 2019


The bill would authorize the state to file a State Innovation Waiver under Section 1332 of the Affordable Care Act to establish a state reinsurance program. A reinsurance program assists health insurers with paying for high-cost insurance claims and helps stabilize and reduce risk in the health insurance market. The reinsurance pool would be funded through federal dollars, hospital fees, and other state funding sources in the first year. In future years, additional revenue sources would be explored. The program would be evaluated after the first two years following its implementation on its effectiveness to improve access to affordable, high value health insurance for consumers who are eligible for tax credit subsidies and cost sharing reduction. It is subject to sunset review and repeal in five years.


The Children’s Campaign supports this bill because we know the high cost of health insurance affects kids across the state. In 2017, there were about 11,000 Colorado children under age 19 living in families at or above 400 percent of the federal poverty level without health insurance. Kids with health insurance not only have better access to the physical, mental and oral health care they need to be healthy, but they are also less likely to drop out of high school, more likely to graduate from college, and have higher incomes as adults. Reinsurance is a proven tool, successfully implemented in several other states, to help reduce risk and lower premiums.  This program would help kids who live in high-cost areas, and whose family incomes are just above the cut off for tax credit assistance, get health coverage.

Current Status

Signed by the governor on May 17 

Previous Statuses

April 19, 2019

Introduced in the Senate and assigned to Senate Health and Humans Services Committee where it will be heard Thurs. Apr., 25 at 1:30pm in room LSB B.

April 26, 2019

Passed out of Senate Health and Human Services Committee on a bipartisan vote of 4-1 and now heads to the Senate Finance Committee.

May 10, 2019

Passed out of the House with a bipartisan vote of 48-16 and now heads to the governor’s desk for signature.