CO GOP Rep. Jeff Hurd backs bill to extend healthcare subsidies

Bill to Safeguard Health Insurance Costs in Western Colorado Co-Sponsored by U.S. Rep. Jeff Hurd

U.S. Representative Jeff Hurd, a Republican from Grand Junction, is attempting to head off an expected spike in health insurance premiums next year by co-sponsoring a bill. Hurd represents a broad district that encompasses pricey resort locales like Aspen, Glenwood Springs, and Telluride, as well as smaller cities like Grand Junction and Pueblo. The bill, known as the Bipartisan Premium Tax Credit Expansion Act, is sponsored by ten House Republicans and is also backed by several Democrats.

Bill Extension to Retain Health Insurance Subsidies

If the bill becomes law, it will extend the increased health insurance subsidies initially passed under former President Joe Biden for one more year. These subsidies are set to expire at the end of 2025. The enhanced premium tax credit, as these subsidies are known, has reduced costs for individuals who purchase their own insurance on the Affordable Care Act marketplaces. In Colorado, about 300,000 people are enrolled in the marketplace, known as Connect for Health Colorado. These enhanced tax credits have not only increased existing subsidies but also extended them to individuals earning above 400% of the federal poverty line, leading to record ACA marketplace registration.

Colorado’s Looming Health Insurance Cost Crisis

With the anticipated termination of these subsidies, health insurers in Colorado are gearing up to increase average rates by 28% statewide and by 38% on the Western Slope, says the Colorado Division of Insurance. This increase could be even more significant for people earning over 400% of the federal poverty line, equating to $62,600 per annum for an individual or $128,600 for a family of four in Colorado. These individuals will have to contend with increased premium rates plus a total loss of subsidies. A family of four on the Western Slope could face a $25,000 increase in their premium in 2026, according to an analysis by the insurance division.

In a press release announcing the bill to extend these subsidies, Hurd’s office warned that people in his district could see an average premium increase of 82% without the tax credits. This would equate to a cost increase of more than $11,000 annually.

“Families in Colorado shouldn’t be faced with higher health care costs because Washington failed to act,” Hurd stated. “Extending the premium tax credit for another year gives Colorado families real stability while we work towards a permanent solution. I will continue to fight for common-sense policies that make health care more affordable and reliable.”

The bill proposed by Hurd does not modify any part of the existing enhanced tax credits, meaning these benefits would continue unchanged until January 1, 2027. However, it’s uncertain whether there would be any willingness to further extend these subsidies or make them permanent beyond next year.

Political Push for Extension of Health Insurance Subsidies

Both Republicans and Democrats in Colorado’s state legislature have urged their colleagues in Congress to act to prevent a subsidy cliff at the end of this year. State Rep. Rick Taggart, another Grand Junction Republican, has spoken to Hurd about the need to extend these subsidies, warning that their expiration would have a “very detrimental impact”. State Democrats blamed their Republican counterparts in Congress for not including an extension of the subsidies in their major tax and spending bill passed in July. Hurd, along with almost all other congressional Republicans, voted for that bill in the face of unanimous Democratic opposition.

During a special legislative session in Colorado that concluded in August, Democrats passed a bill to mitigate some of the expected insurance rate increases next year. This measure, however, will not come into effect if Congress extends the tax credits.

Adam Fox, deputy director for the Colorado Consumer Health Initiative, emphasized the urgency of Congressional action in a recent interview as open enrollment for next year’s insurance plans starts on November 1.