Colorado House Bills 1164 & 1355

HB 1164, effective September 30, 2004, allowed for rates to be increased up to 10% or discounted up 25%. Creating a rate between .75 to 1.1. Rates may also be adjusted uniformly or individually up to 15% for tobacco use. Renewal rates cannot increase by more than 15% due to claims experience and health status.

House Bill 1355 is a measure to return to “community rating” whereby the same medical costs are charged to employees across the board without regard to individual group claims experience or health status. This bill eliminates the current rating structure of HB 1164 which was .75% to 1.1% by the following changes. Effective January 1, 2008 for all small group health (1-50 employees) insurance renewals will no longer be rated up using the surcharge of 10% that was allowed for non-healthy groups. Changing the rating structure to the following .75% to 1.0 % thus eliminating the 10% rate up/surcharge for groups with apparent medical risks. In January 1, 2009 the rating structure changes to a flat table rate of 1.0 thereby eliminating the surcharge or discount available under HB1164 .

If you are interested in reading the entire House Bills please click on the links provided above.