Concerning health-care support for large employers' workers, and, in connection therewith, making an appropriation.
HB26-1327 creates the Large Employer Health-Care Support Enterprise within the Colorado Department of Health Care Policy and Financing and authorizes it to impose a new fee on certain large employers. A “large employer” is generally one with 500 or more “supported workers,” meaning workers who receive state medical assistance benefits after the first 60 days of employment. The enterprise would collect a fee of $2,300 per supported worker for calendar year 2027, with authority to adjust the amount in later years based on costs, inflation, or other factors. The bill also establishes a worker buy-in program that can reimburse large employers for some costs of allowing certain part-time workers to enroll in employer-sponsored health plans.
The enterprise’s stated purpose is to use fee revenue to help pay for medical assistance benefits for workers of large employers and to support provider reimbursement so those workers can access care. Employers that provide affordable health coverage to workers working at least 20 hours per week or 80 hours per month are exempt, as are franchisees, nonprofits, public employers, and employers covered by collective bargaining agreements that include health coverage. The bill requires annual employer reporting, allows the enterprise and Department of Revenue to use administrative data to identify liable employers, and creates penalties, interest, and collection procedures for nonpayment or misreporting. It also creates a dedicated fund, authorizes revenue bonds, and includes provisions intended to keep the enterprise outside Colorado’s TABOR revenue limits by characterizing the charge as a fee rather than a tax.
The bill would amend Colorado law in Title 25.5 to add the new enterprise, board, fee, fund, and worker buy-in program, and it would also amend Title 39 to make the fee subject to certain tax-collection and confidentiality provisions. It appropriates $59,625 to the Department of Law for legal services tied to implementation. The measure is structured to operate as a government-owned business enterprise, with annual reporting to the legislature and public records/open meetings requirements, while protecting individual worker medical-assistance information from disclosure.
Overall sentiment in the available record appears mixed to negative. The bill was amended on second reading in the House, but there are no recorded committee transcripts or vote details in the provided materials, and its last recorded action was a Senate Finance Committee postponement indefinitely, which indicates it did not advance in the Senate committee process. The structure of the bill suggests support from sponsors for shifting some health-care costs associated with low-wage or part-time workers toward large employers, but the lack of recorded debate and the later indefinite postponement suggest the proposal faced significant resistance or did not secure sufficient support.
The main points of contention likely concern the new employer fee, the scope of the reporting requirements, and the policy choice to tie employer liability to workers receiving public medical assistance. Employers subject to the fee may object to the financial burden, the administrative reporting obligations, and the use of state data to identify and assess them. Other likely concerns include the bill’s enterprise/TABOR structure, the characterization of the charge as a fee rather than a tax, and whether the measure effectively penalizes employers that rely on part-time labor or do not offer coverage to all workers. At the same time, supporters would likely emphasize worker health, retention, productivity, and the bill’s goal of offsetting public medical-assistance costs attributable to large employers’ workforces.
The bill would add a new statutory part to Title 25.5 creating the Large Employer Health-Care Support Enterprise and Large Employer Health-Care Support Fund, while also amending Title 39 to integrate the new fee into state collection and confidentiality rules. It would impose new reporting, assessment, collection, penalty, and review obligations on employers with 500 or more supported workers, and it would authorize HCPF, the Department of Revenue, and the enterprise board to share and use administrative data for fee administration. The measure also creates a new worker buy-in reimbursement program and appropriates state funds for legal services to implement the act.
The available record suggests the bill had some legislative support in the House, as shown by its amendment on second reading, but there is no evidence of recorded committee debate or votes in the provided materials. Its final status—postponed indefinitely in Senate Finance—indicates the proposal did not gain enough support to continue. Overall, the bill appears to have been controversial, with the policy likely appealing to supporters of expanded health-care financing but facing opposition from affected employers and others concerned about the new fee structure.
Likely points of contention include whether the bill’s charge is a legitimate enterprise fee or an impermissible tax, whether it unfairly shifts public health-care costs onto large employers, and whether the reporting and enforcement regime is too burdensome. Employers subject to the fee would likely object to being identified and assessed based on workers who receive Medicaid, while supporters would argue that large employers benefit from state-subsidized coverage and should help finance it. Additional controversy likely centers on the TABOR implications, the use of confidential taxpayer and worker data, and the bill’s exemptions for certain employer categories.