Notice of Adoption of Emergency Regulation 21-E-08 - Concerning Cost Sharing Reduction Enhancements

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The Division would like to provide notice that the Commissioner has adopted the following emergency regulation:

The purpose of this regulation is to provide standards for including payments to carriers pursuant to C.R.S. § 10-16-1205(1)(b)(II) in rate filings for health benefit plans regulated by the Colorado Division of Insurance.

The Division of Insurance finds, pursuant to § 24-4-103(6)(a), C.R.S., that immediate adoption of this regulation is imperatively necessary to comply with state law and for the preservation of public health, safety, or welfare. The American Rescue Plan Act of 2021, H.R. 1319 signed into law on March 11, 2021 increased premium tax credits for 2021 available to all individuals purchasing health benefit plans through the Colorado health benefit exchange. As a result, the previous decision from the Health Insurance Affordability Enterprise Board on November 20, 2020, recommending creation of a state based premium wrap for payments pursuant to § 10-16-1205(1)(b)(II), C.R.S., would no longer be necessary to meet the objective of increasing affordability of health insurance on the individual market. Thus, on March 24, 2021, the Health Insurance Affordability Enterprise Board approved implementation of an enhanced cost sharing reduction for individual enrollees for the 2022 benefit year. Pursuant to the requirements of C.R.S. § 10‑16‑1207(5), the Commissioner of Insurance considered this recommendation from the Health Insurance Affordability Enterprise Board before adopting this regulation. This Division also finds that the adoption of this regulation prior to the July 6, 2021 deadline for carriers to submit rates for plans starting in benefit year 2022, pursuant to C.R.S. § 10-16-107, is necessary so that carriers may consider these payments during rate development. Therefore, compliance with the requirements of § 24-4-103, C.R.S., would be contrary to the public interest.

This emergency regulation, and other Division emergency regulations, can be found on the Division's Emergency Regulations page.

Find additional information on insurance and the COVID-19 public health emergency on the COVID-19 & Insurance page. This emergency regulation can be found under the health insurance tab.