SB12-053, Repeal of Health Benefits Exchange
SB12-053
REPEAL OF THE “COLORADO HEALTH BENEFIT EXCHANGE ACT” IF ANY PART OF THE “PATIENT PROTECTION AND AFFORDABLE CARE ACT” IS RULED UNCONSTITUTIONAL
Sen. Neville, Rep. Looper
Staff Name: Lou Irwin
What the Bill Does:
The bill repeals the “Colorado Health Benefit Exchange Act” if the “Patient Protection and Affordable Care Act (ACA)” is repealed or the United States supreme court rules that all or any part of the federal act is unconstitutional.
Colorado Context:
The “Colorado Health Benefit Exchange Act” (HB11-200) was passed by the legislature last year to set up a health care insurance exchange, as required by federal passage of the ACA. A 10-member Legislative Health Benefit Exchange Implementation Review Committee was created to guide implementation of the exchange, make recommendations, and carry legislation. No state appropriations were directed at this process, but the state received about 1 million dollars in federal grants last year to implement the exchange.
National Context:
The ACA is federal law, and the states are mandated to set up health insurance exchanges, or have the federal government do it for them. The ACA is currently the subject of court challenges on various grounds from a number of states, including Colorado, and lower courts have ruled both in favor and against those challenges. The Supreme Court has agreed to hear oral arguments in the case in March of this year, and a final decision is expected by June. The possibility exists that some parts of the law could be declared unconstitutional. In that event, if this bill is passed, it would negate the “Colorado Health Benefit Exchange Act.”
Provisions of the Bill:
Specifies that the Colorado Health Benefit Exchange established by SB11-200 is null and void if:
- The ACA is repealed by Congress, or
- Any part of the ACA is found unconstitutional by the Supreme Court
Fiscal Impact: If HB11-200 is repealed and the health benefit exchange is eliminated, Legislative Legal Services support, and some staff from the Governor’s office and state agencies will have some reduction in work load, but since no funds we appropriated for this effort, the state will realize no net gain. The possibility exists that some or all federal funds received as grants to implement the exchange will have to be returned to the federal government, resulting in an expense to the state of up to $1 million from the current budget.
