SB18-132 and Catastrophic Health Insurance Plans


Bill directs DOI to study feasibility of expanding eligibility for catastrophic health plans.

Senate Bill (SB) 18-132 was passed in the 2018 legislative session and requires the Division of Insurance (DOI) to conduct an actuarial analysis to determine if expanding the eligibility for catastrophic health plans to residents 30 years of age and older and those not meeting a hardship requirement would result in a reduction in advanced premium tax credits (APTC) received by Colorado residents or increase the average premiums of individual health plans. If the actuarial analysis shows that there would not be a reduction in APTC or an increase in average premiums, the bill directs the DOI to apply to the Federal Government for a 1332 waiver of the federal law that currently restricts offering catastrophic health plans only to people under age 30 or who meet hardship requirements.

The DOI contracted with Wakely Consulting Group, LLC, to conduct the actuarial analysis, and Wakely delivered the analysis on November 7, 2018. The analysis is linked below. 

In light of the actuarial analysis and prior to applying for the 1332 waiver, the DOI has requested an initial determination from the Center for Consumer Information and Insurance Oversight (CCIIO - part of the Centers for Medicare & Medicaid Services, or CMS) regarding the likelihood of approval of the waiver application. This request was sent to CCIIO on November 20, 2018, and the Division is awaiting a response.