The board responsible for securing financing for Colorado’s health insurance exchange – Connect for Health Colorado – has imposed a new fee on health insurance polices to help fund the state’s insurance exchange. Colorado is one of a handful of states that chose to operate its own health insurance exchange. The majority of states are using federally facilitated exchanges (meaning the federal government operates the state’s exchange).
The new fee of $1.25 per member per month will apply to large and small group employer policies issued in Colorado from July 1, 2014, through June 30, 2015, as well as individual insurance and stop loss coverage issued in Colorado. The fee applies to all health insurance that is sold in Colorado, including health insurance sold outside Colorado’s health insurance exchange.
Colorado authorities have yet to release any official guidance on the new fee. Arguably, the fee should only apply to Colorado residents who are covered under a health insurance policy issued in Colorado. Future guidance will also need to address the extent to which the fee applies to fully insured dental, vision and hospital indemnity insurance.