Amendments for HB13-1245

House Journal, April 1
21 HB13-1245 be amended as follows, and as so amended, be referred to
22 the Committee on Finance with favorable
23 recommendation:
24
25 Amend printed bill, strike everything below the enacting clause and
26 substitute the following:
27
28 "SECTION 1. In Colorado Revised Statutes, 10-22-103, amend
29 (5) and add (6), (7), (8), (9) (10), and (11) as follows:
30 10-22-103. Definitions. As used in this article, unless the context
31 otherwise requires:
32 (5) "Secretary" means the secretary of the United States
33 department of health and human services "GROUP HEALTH PLAN" MEANS
100234 AN EMPLOYEE WELFARE BENEFIT PLAN AS DEFINED IN 29 U.S.C. SEC.
35 (1) OF THE FEDERAL "EMPLOYEE RETIREMENT INCOME SECURITY ACT OF
36 1974" TO THE EXTENT THAT THE PLAN PROVIDES HEALTH CARE SERVICES,
37 INCLUDING ITEMS AND SERVICES PAID FOR AS HEALTH CARE SERVICES, TO
38 EMPLOYEES OR THEIR DEPENDENTS DIRECTLY OR THROUGH INSURANCE
39 REIMBURSEMENT OR OTHERWISE. A "GROUP HEALTH PLAN" INCLUDES A
40 GOVERNMENT OR CHURCH PLAN.
41 (6) "HEALTH BENEFIT PLAN" HAS THE SAME MEANING SET FORTH
42 IN SECTION 10-16-102; EXCEPT THAT THE TERM INCLUDES A DENTAL PLAN.
43 (7) "INSURER" MEANS ANY ENTITY THAT PROVIDES GROUP HEALTH
44 PLANS OR INDIVIDUAL HEALTH BENEFIT PLANS SUBJECT TO INSURANCE
45 REGULATION IN THIS STATE, AS WELL AS ANY ENTITY THAT DIRECTLY OR
46 INDIRECTLY PROVIDES STOP-LOSS OR EXCESS LOSS INSURANCE TO A
47 SELF-INSURED GROUP HEALTH PLAN INCLUDING A PROPERTY AND
48 CASUALTY INSURANCE COMPANY.
49 (8) "MEDICAID" MEANS FEDERAL INSURANCE OR ASSISTANCE AS
50 PROVIDED BY TITLE XIX OF THE FEDERAL "SOCIAL SECURITY ACT", AS
51 AMENDED.
52 (9) "MEDICARE" MEANS FEDERAL INSURANCE OR ASSISTANCE AS
53 PROVIDED BY TITLE XVIII OF THE FEDERAL "SOCIAL SECURITY ACT", AS
54 AMENDED.
55 (10) "NUMBER OF LIVES INSURED" MEANS THE NUMBER OF
56 EMPLOYEES AND RETIRED EMPLOYEES AND INDIVIDUAL POLICYHOLDERS
11 OR SUBSCRIBERS IN THE INDIVIDUAL AND GROUP MARKETS ON MARCH
2 OF THE PREVIOUS CALENDAR YEAR FOR WHICH A SPECIAL FEE IS BEING
3 ASSESSED. FOR INSURERS PROVIDING STOP-LOSS, EXCESS LOSS, OR
4 REINSURANCE, "NUMBER OF LIVES INSURED" DOES NOT INCLUDE
5 EMPLOYEES, RETIRED EMPLOYEES, OR INDIVIDUAL POLICYHOLDERS OR
6 SUBSCRIBERS WHO HAVE BEEN COUNTED BY THE PRIMARY INSURER OR
7 PRIMARY REINSURER.
8 (11) "SECRETARY" MEANS THE SECRETARY OF THE UNITED STATES
9 DEPARTMENT OF HEALTH AND HUMAN SERVICES.
10 SECTION 2. In Colorado Revised Statutes, 10-22-107, amend
11 (1) and (7) as follows:
12 10-22-107. Legislative health benefit exchange implementation
13 review committee - creation - duties. (1) For the purposes of guiding
14 implementation of an exchange in Colorado, making recommendations
15 to the general assembly, and ensuring that the interests of Coloradans are
16 protected and furthered, there is hereby created the legislative health
17 benefit exchange implementation review committee. The committee shall
18 meet on or before August 1, 2011, and thereafter at the call of the chair
19 as often as AT LEAST TWO TIMES DURING EACH CALENDAR YEAR, BUT NO
20 MORE THAN five times during each calendar year. The committee may use
21 the legislative council staff to assist its members in researching any
22 matters.
23 (7) THE BOARD SHALL SEND THE COMMITTEE AN ANNUAL REPORT
24 THAT CONTAINS THE FINANCIAL AND OPERATIONAL PLANS OF THE
25 EXCHANGE. The committee shall review the financial and operational
26 plans of the exchange.
27
28 SECTION 3. In Colorado Revised Statutes, amend 10-22-108 as
29 follows:
30 10-22-108. Moneys for implementation, operation, and
31 sustainability of the exchange. Moneys received by the board for the
32 implementation of this article, AND FOR BUILDING RESERVES FOR THE
33 OPERATION AND SUSTAINABILITY OF THE EXCHANGE PURSUANT TO
34 SECTION 10-22-109, must be transferred directly to the exchange for the
35 purposes of this article. The board shall deposit any moneys received in
36 a banking institution within or outside the state. Moneys from the general
37 fund shall not be used for the implementation of this article, except for
38 the sums specified in section 10-22-107 (3) and for legislative staff
39 agency services. The ACCOUNT OF THE banking institution must be
40 insured by the federal deposit insurance corporation and compliant with
41 the "Savings and Loan Association "Public Deposit Protection Act",
42 article 47 10.5 of title 11, C.R.S.
43 SECTION 4. In Colorado Revised Statutes, add 10-22-109,
44 10-22-110, and 10-22-111 as follows:
45 10-22-109. Funding for the operation of the exchange and
46 reserves - special fees - rules. (1) ON AND AFTER JANUARY 1, 2014,
47 AMONG OTHER FUNDING SOURCES DERIVED THROUGH THE OPERATION OF
48 THE EXCHANGE, FUNDING FOR THE EXCHANGE MAY BE FROM THE
49 FOLLOWING SOURCES:
50 (a) SPECIAL FEES ASSESSED AGAINST INSURERS AS PROVIDED IN
51 SUBSECTION (2) OF THIS SECTION; AND
52 (b) ANY MONEYS ACCEPTED THROUGH GIFTS, GRANTS, OR
53 DONATIONS RECEIVED BY THE BOARD FOR OPERATION, RESERVES, AND
54 SUSTAINABILITY OF THE EXCHANGE, INCLUDING CONTRIBUTIONS RECEIVED
55 PURSUANT TO THE PREMIUM TAX CREDIT ALLOCATION IN SECTION
56 10-22-110.
1 (2) (a) ON AND AFTER JANUARY 1, 2014, THROUGH DECEMBER 31,
2 2016, THE BOARD SHALL ASSESS SPECIAL FEES AGAINST INSURERS IN AN
3 AMOUNT NECESSARY TO PROVIDE FUNDING FOR THE EXCHANGE. THE
4 BOARD SHALL DETERMINE THE AMOUNT OF THE SPECIAL FEES BASED ON
5 THE BOARD-APPROVED FINANCIAL PLAN AND ANTICIPATED BUDGETARY
6 NEEDS FOR THE UPCOMING YEAR TO COMPLY WITH THIS ARTICLE AND
7 ASSOCIATED FEDERAL REQUIREMENTS. THE SPECIAL FEES MUST NOT
8 EXCEED ONE DOLLAR AND EIGHTY CENTS PER NUMBER OF LIVES INSURED
9 PER MONTH; EXCEPT THAT THE SPECIAL FEES ASSESSED FOR LIVES INSURED
10 UNDER DENTAL PLANS MUST NOT EXCEED EIGHTEEN CENTS PER NUMBER
11 OF LIVES INSURED PER MONTH. THE BOARD SHALL USE SPECIAL FEES
12 ASSESSED PURSUANT TO THIS SECTION FOR THE OPERATING EXPENSES OF
13 THE EXCHANGE, THE RESERVES OF THE EXCHANGE, AND RELATED
14 AGREEMENTS.
15 (b) THE BOARD SHALL USE ANY MONEY RECEIVED PURSUANT TO
16 SECTION 10-8-536 (2), AS ENACTED IN HOUSE BILL 13-1115, ENACTED IN
517 2013, FROM THE RESERVES OF COVERCOLORADO, AS CREATED BY PART
18 OF ARTICLE 8 OF TITLE 10, TO OFFSET THE AMOUNT OF THE FEES ASSESSED
19 AGAINST INSURERS PURSUANT TO THIS SUBSECTION (2); EXCEPT THAT THE
20 MONEY RECEIVED MUST NOT BE USED TO OFFSET THE SPECIAL FEES PAID
21 BY DENTAL PLANS.
22 (c) AMOUNTS ASSESSED AGAINST INSURERS TO BE PAID TO THE
23 EXCHANGE PURSUANT TO THIS SUBSECTION (2) ARE NOT CONSIDERED
24 PREMIUMS FOR ANY PURPOSE, INCLUDING THE COMPUTATION OF GROSS
25 PREMIUM TAX OR AGENTS'S COMMISSION.
26 (d) IF AN INSURER FAILS TO PAY THE SPECIAL ASSESSMENT FEE,
27 THE COMMISSIONER MAY, AFTER PROPER NOTICE AND HEARING, SUSPEND
28 OR REVOKE THE INSURER'S CERTIFICATE OF AUTHORITY TO TRANSACT
29 INSURANCE BUSINESS IN THIS STATE.
30 (3) THE COMMISSIONER SHALL PROMULGATE RULES TO IMPLEMENT
31 THIS SECTION THAT INCLUDE:
32 (a) THE REASONABLE TIME PERIODS FOR THE BILLING AND
33 COLLECTION OF THE SPECIAL FEES; AND
34 (b) THE PROCESS FOR DETERMINING THE ALLOCATION OF THE
35 ASSESSMENT AMONG INSURERS, INCLUDING THE PROCESS FOR OBTAINING
36 ACCURATE INFORMATION ABOUT THE NUMBER OF POLICIES ISSUED AND
37 LIVES INSURED BY A INSURER WITHIN THE SIX MONTHS PRIOR TO THE
38 ASSESSMENT.
39 10-22-110. Tax credit for contributions to the exchange -
40 allocation notice - rules. (1) (a) FOR THE TAX YEAR 2014 AND EACH TAX
41 YEAR THEREAFTER, IS ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY
42 SECTIONS 10-3-209 AND 10-6-128 TO ANY INSURANCE COMPANY THAT
43 BECOMES A QUALIFIED TAXPAYER BY MAKING A CONTRIBUTION TO THE
44 EXCHANGE PURSUANT TO THIS SECTION.
45 (b) A QUALIFIED TAXPAYER CLAIMING A CREDIT AGAINST PREMIUM
46 TAX LIABILITY UNDER THIS SECTION IS NOT REQUIRED TO PAY ANY
47 ADDITIONAL RETALIATORY TAX AS A RESULT OF CLAIMING THE CREDIT.
48 (2) THE COMMISSIONER MAY PROMULGATE RULES NECESSARY FOR
49 THE ADMINISTRATION OF THE TAX CREDIT ALLOWED BY SUBSECTION (1)
50 OF THIS SECTION IN ACCORDANCE WITH ARTICLE 4 OF TITLE 24, C.R.S.
51 (3) (a) SUBJECT TO PARAGRAPH (c) OF SUBSECTION (4) OF THIS
52 SECTION, AN INSURANCE COMPANY SHALL BECOME A QUALIFIED
53 TAXPAYER IF ALL OF THE FOLLOWING CONDITIONS ARE MET:
54 (I) THE INSURANCE COMPANY DECLARES WITH ITS QUARTERLY TAX
55 PAYMENT DUE ON OR ABOUT JULY 31 IN THE MANNER PRESCRIBED BY THE
56 COMMISSIONER ITS INTENT TO CONTRIBUTE TO THE EXCHANGE ON OR
1 BEFORE OCTOBER 31 AN AMOUNT OF MONEY EQUAL TO THE PREMIUM
2 TAXES PAID BY THE COMPANY PURSUANT TO THE JULY 31 TAX PAYMENT
3 OR A LESSER AMOUNT AS SPECIFIED BY THE COMMISSIONER IF REQUIRED
4 PURSUANT TO PARAGRAPH (b) OF SUBSECTION (4) OF THIS SECTION;
5 (II) THE TOTAL AMOUNT OF THE TAX CREDITS GRANTED BY THE
6 COMMISSIONER DOES NOT EXCEED FIVE MILLION DOLLARS; AND
7 (III) THE INSURANCE COMPANY RECEIVES AN ALLOCATION NOTICE
8 FROM THE COMMISSIONER AND THE INSURANCE COMPANY MAKES THE
9 CONTRIBUTION TO THE EXCHANGE AS SPECIFIED IN THE ALLOCATION
10 NOTICE ON OR BEFORE OCTOBER 31.
11 (b) SUBJECT TO PARAGRAPH (c) OF SUBSECTION (4) OF THIS
12 SECTION, AN INSURANCE COMPANY BECOMES A QUALIFIED TAXPAYER MAY
13 CLAIM THE TAX CREDIT ON ONE OR MORE SUBSEQUENT QUARTERLY OR
14 ANNUAL TAX PAYMENTS BEGINNING ON OR ABOUT OCTOBER 31.
15 (c) THE BOARD SHALL PROMPTLY NOTIFY THE COMMISSIONER
16 WHEN IT RECEIVES A CONTRIBUTION PURSUANT TO THIS SECTION OF THE
17 AMOUNT AND DATE OF THE CONTRIBUTION AND THE NAME OF THE
18 CONTRIBUTOR.
19 (4) (a) SUBJECT TO PARAGRAPH (c) OF THIS SUBSECTION (4), BY
20 SEPTEMBER 30 OF EACH YEAR, THE COMMISSIONER SHALL:
21 (I) SEND AN ALLOCATION NOTICE TO EACH INSURANCE COMPANY
22 WHOSE DECLARATION OF INTENT TO CONTRIBUTE TO THE EXCHANGE HAS
23 BEEN ACCEPTED PURSUANT TO THIS SUBSECTION (4). THE ALLOCATION
24 NOTICE SHALL SPECIFY THE AMOUNT OF TAX CREDITS ALLOCATED TO THE
25 INSURANCE COMPANY AND THE AMOUNT OF CASH THE INSURANCE
26 COMPANY MUST CONTRIBUTE TO THE EXCHANGE BY OCTOBER 31, WHICH
27 AMOUNTS SHALL BE IDENTICAL AND NOT EXCEED THE AMOUNT OF
28 PREMIUM TAXES PAID BY THE INSURANCE COMPANY IN ITS QUARTERLY
29 TAX PAYMENT DUE ON OR ABOUT JULY 31; AND
30 (II) POST ON THE DIVISION'S WEB SITE WHETHER THE FULL AMOUNT
31 OF TAX CREDITS AUTHORIZED TO BE ALLOCATED EACH YEAR HAS BEEN
32 ALLOCATED.
33 (b) SUBJECT TO PARAGRAPH (c) OF THIS SUBSECTION (4), THE
34 COMMISSIONER SHALL ALLOCATE NO MORE THAN A TOTAL OF FIVE
35 MILLION DOLLARS OF PREMIUM TAX CREDITS PER YEAR. THE
36 COMMISSIONER SHALL ALLOCATE TO AN INSURANCE COMPANY THAT HAS
37 DECLARED ITS INTENT TO CONTRIBUTE TO THE EXCHANGE PURSUANT TO
38 THIS SECTION TAX CREDITS IN AN AMOUNT EQUAL TO THE AMOUNT OF
39 PREMIUM TAXES PAID BY THE INSURANCE COMPANY IN ITS QUARTERLY
40 TAX PAYMENT DUE ON OR ABOUT JULY 31 IN THE ORDER IN WHICH THE
41 DIVISION RECEIVES SUCH QUARTERLY TAX PAYMENTS UNTIL THE FULL
42 AMOUNT OF CREDITS AVAILABLE PURSUANT TO THIS SECTION HAS BEEN
43 ALLOCATED; EXCEPT THAT, IF SUCH AMOUNT OF TAXES OR THE SUM OF ALL
44 THE TAXES FILED BY ALL THE INSURANCE COMPANIES ON ANY ONE DAY
45 WOULD EXCEED, SINGLY OR IN THE AGGREGATE, THE ANNUAL MAXIMUM
46 AGGREGATE AMOUNT OF TAX CREDITS AVAILABLE UNDER THIS SECTION,
47 THE COMMISSIONER SHALL REDUCE THE ALLOCATION TO THE INSURANCE
48 COMPANY WHOSE CONTRIBUTION FIRST EXCEEDS THE ANNUAL MAXIMUM
49 AGGREGATE TO THE AMOUNT NEEDED TO SATISFY THE ANNUAL MAXIMUM
50 AGGREGATE. IF THE COMMISSIONER IS UNABLE TO DETERMINE THE ORDER
51 OF RECEIPT OF TAX PAYMENTS ON THAT DAY, THE COMMISSIONER SHALL
52 ALLOCATE THE TAX CREDITS TO THE COMPANY OR AMONG THE COMPANIES
53 ON A PRO RATA BASIS BASED ON THE RATIO SUCH COMPANY'S QUARTERLY
54 TAX PAYMENT BEARS TO THE TOTAL AMOUNT OF ALL SUCH COMPANIES'
55 QUARTERLY TAX PAYMENTS UNTIL THE FULL AMOUNT OF CREDITS
56 AVAILABLE PURSUANT TO THIS SECTION HAS BEEN ALLOCATED.
1 (c) (I) THE COMMISSIONER SHALL ALLOW INSURANCE COMPANIES
2 TO DECLARE THEIR INTENT TO CONTRIBUTE TO THE EXCHANGE PURSUANT
3 TO THIS SECTION ON THE INSURANCE COMPANIES' QUARTERLY TAX
4 PAYMENTS DUE ON OR ABOUT OCTOBER 31 AND SHALL SEND SUCH
5 COMPANIES ALLOCATION NOTICES BY FEBRUARY 1 IF:
6 (A) THE FULL AMOUNT OF TAX CREDITS AVAILABLE IN ANY ONE
7 YEAR HAVE NOT BEEN FULLY ALLOCATED BY THE COMMISSIONER
8 PURSUANT TO STATEMENTS OF INTENT FILED WITH INSURANCE COMPANIES'
9 QUARTERLY TAX PAYMENTS DUE ON OR ABOUT JULY 31; OR
10 (B) THE TOTAL AMOUNT OF TAX CREDITS HAS BEEN CLAIMED, BUT
11 ONE OR MORE INSURANCE COMPANIES FAILED TO TIMELY MAKE A
12 CONTRIBUTION TO THE EXCHANGE.
13 (II) AN INSURANCE COMPANY THAT DECLARES ITS INTENT TO
14 CONTRIBUTE TO THE EXCHANGE PURSUANT TO THIS PARAGRAPH (c) SHALL
15 MAKE THE CONTRIBUTION TO THE EXCHANGE AS SPECIFIED IN THE
16 ALLOCATION NOTICE ON OR BEFORE MARCH 1 AND MAY CLAIM THE TAX
17 CREDIT ON ONE OR MORE SUBSEQUENT QUARTERLY OR ANNUAL TAX
18 PAYMENTS DUE ON OR ABOUT MARCH 1.
19 (5) THE BOARD SHALL USE MONEYS CONTRIBUTED TO THE
20 EXCHANGE PURSUANT TO THIS SUBSECTION (3) AND INTEREST DERIVED
21 FROM THE DEPOSIT AND INVESTMENT OF THE MONEYS TO OPERATE AND
22 SUSTAIN THE EXCHANGE AND TO BUILD RESERVES.
23 10-22-111. Tax exemption. THE EXCHANGE IS EXEMPT FROM ANY
24 TAX LEVIED BY THIS STATE OR ANY OF ITS POLITICAL SUBDIVISIONS.
25 SECTION 5. Safety clause. The general assembly hereby finds,
26 determines, and declares that this act is necessary for the immediate
27 preservation of the public peace, health, and safety.".
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