Senate Passes Historic Legislation to Lower Health Care Costs, Improve Access

Senator Donovan passes landmark bill to lower health insurance premiums, improve health equity, and increase accessibility

DENVER, CO - Today, the Senate passed HB21-1232: Standardized Health Benefit Plan Colorado Option. This bold piece of policy, sponsored by Senate President Pro Tempore Kerry Donovan, will not only make health care more affordable, but improve overall accessibility, equity, and coverage.

“Today is a great day for Colorado. After a years-long process where the health care industry, advocacy groups, and legislators came together – refusing to accept the status quo – we have accomplished what once seemed impossible,” said Senator Kerry Donovan, D-Vail. “Rather than stand idly by as folks were forced to choose between paying rent and paying their insurance bill, we moved forward with the knowledge that accessible, affordable, high-quality care can be a reality. I am incredibly proud of what we have been able to accomplish on behalf of every Coloradan. Because whether you’re a raft guide in Steamboat, a small business owner in Denver, or a ranching family in Bennett, this bill will make a real difference in your quality of life.”

Specifically, the bill requires a 15% reduction in premiums over the next three years. If these reduction targets are not met, the state may set rates on a limited basis to meet consumer savings targets. Additionally, the state will create a standardized benefit plan, available on the individual and small group market through private insurance carriers in every county in the state. 

The standardized plan will be developed with input from doctors, hospitals, and consumers from marginalized and underserved communities around the state. This is designed to improve racial health equity, improve geographic disparities, and ensure that a diversity of voices are represented. 

The Colorado Option will lower health care costs for individuals, families, and businesses across the state as well as increase accountability and consumer choice in the health care industry through multiple transparency mechanisms.

The bill now heads back to the House for final concurrence. To read the bill and find updates regarding the status, visit leg.colorado.gov/bills/hb21-1232.