On Monday, Governor John Hickenlooper announced bipartisan support to introduce legislation that would create the Colorado Health Benefits Exchange. The governor was joined at the announcement by Senate President Pro-tem Betty Boyd, D-Lakewood, and House Majority Leader Amy Stephens, R-Monument.

Details of the Colorado-based health exchange were outlined in SB 11-200, introduced in the Senate following the announcement. The exchange is intended to facilitate the access to and enrollment in health plans in the individual market in Colorado and include a small business health options program to assist small employers in facilitating the enrollment of their employees in health plans offered in the small employer market. The intent of the Colorado health benefit exchange is to increase access, affordability, and choice for individuals and small employers in purchasing health insurance in Colorado.

The bill creates a nonprofit unincorporated public entity known as the Health Benefits Exchange. A board of directors will govern the operation of the exchange. While the exchange is an instrumentality of the state, its debts and liabilities will not constitute debts and liabilities of the state, and neither the exchange nor the board will be an agency of the state. The exchange will foster a competitive marketplace for insurance and will not solicit bids or engage in the active purchasing of insurance. All carriers authorized to conduct business in Colorado may be eligible to participate in the exchange.

Other core components of the bill include:

• The Colorado Health Benefits Exchange shall initially be funded by gifts, grants and donations, and shall apply for establishment grants pursuant to Section 1311 of the federal Affordable Care Act.
• The Colorado Health Benefits Exchange shall be governed by a board consisting of nine members who are permanent Colorado residents. The majority of the board members will be individuals and business representatives who are not directly affiliated with the insurance industry.
• Of the nine members, five shall be appointed by the Governor, and one each appointed by: the President of the Senate; the Speaker of the House; the Minority Leader of the House; and the Minority Leader of the Senate. These appointments should be coordinated to ensure a broad representation of identified skill sets.
• Each person appointed to the board shall have demonstrated expertise in at least two of the following areas: (a) individual health insurance coverage; (b) small business health insurance coverage; (c) health benefits administration; (d) health care finance; (e) administering a public or private health care delivery system; (f) purchasing health insurance coverage; (g) health care consumer navigation or assistance; (h) health care economics or health care actuarial sciences; (i) information technology; (j) starting a small business with 50 or fewer employees; and (k) expert in the provision of health care service.
• Creates a new legislative committee of 10 members that meet five times a year. The committee will review and approve grants and an initial work plan.
• The Board shall hire an executive director to administer the Colorado Health Benefits Exchange who is approved by legislative committee.
• The Board shall provide an annual report to the House and Senate Committees of reference.
• The Colorado Health Benefits Exchange operations shall comply with sunshine laws and ethics requirements.

Click here to hear to read the full press release regarding the introduction of the bill, and click here to listen to audio from Monday’s press conference.