To: Honorable Mayor and Members of Town Council
From: Kristin Read, Assistant Town Manager
Title
Update: Legislative Update
Body
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Executive Summary
The Colorado General Assembly convened its 2020 regular session on January 8. With assistance from the Colorado Municipal League (CML) and other sources, staff will monitor - and provide Council with updates on - legislative activity until the Assembly adjourns in May.
Staff does not take a position on any legislation unless so directed by Council. Staff presents the summary on public option healthcare below per Council’s direction, along with brief summaries of a couple of items staff believes may be of Council interest. Additionally, attached (Attachment A) is a list of all of the legislation CML is following thus far this legislative session. If Council is interested in additional information on any of these - or any other - bills, staff will provide such information in a future update.
Public Option Healthcare
House Bill 19-1004 required the Department of Health Care Policy & Financing and the Division of Insurance to develop and submit a proposal to the General Assembly by November 15, 2019, concerning the design, costs, benefits and implementation for a state option for health care coverage. Those agencies submitted their proposal, which is summarized in Attachment B.
Per the agencies’ full final report, “it is likely that the General Assembly will need to make adjustments to existing statutory authority in this upcoming legislative session to successfully implement key pieces of this proposal, including provider and carrier participation, hospital reimbursements, plan standardization, and potentially medical loss ratio adjustments and the advisory board.”
To date, no 2020 legislation has been introduced related to these items. Still, some entities are providing feedback to the proposal’s authors, including the Denver Metro Chamber of Commerce, which says on its website: “We believe requiring a company to compete in a market that they aren’t equipped to serve only adds costs and inefficiencies.”
Healthcare/health policy website “State of Reform” has summarized other responses to the proposal, which it characterizes as “a mixed bag.” This summary is available in Attachment C. News articles from the Denver Post and Colorado Sun in Attachment D further highlight multiple opinions and outstanding questions relative to the proposal.
The health plans contemplated within the proposal would be available in 2022 to Colorado residents who buy health insurance in the individual market. It’s envisioned the plans would later become available to small groups, but it does not appear the Town’s benefits offerings would be impacted by any legislation related to the proposal. (The Town’s insurance group is considered a large group.) Within the full final report, it’s noted that “persons who qualify for … employer-sponsored coverage may be better served staying in those programs.”
CML staff said the League had not yet seen any proposed bill language will not likely take a position on legislation related to this topic unless it is of direct municipal impact.
FPPA contribution increase
HB 1044 would require increases to the Town’s contributions toward the Fire and Police Pension Association - under which CRFD members are covered - to fully fund death and disability coverage, which is currently funded at 77%; to provide for cost of living adjustments for retirees; and to allow plan members to retire at age 50 with 30 years of service, down from the current requirement of age 55 with 25 years of service. CML is opposing the bill unless it is amended due to the financial requirements it would impose on municipalities. Staff has not yet conducted a full analysis of the financial implications for Castle Rock, but is keeping a close eye on this legislation, which could have significant financial implications for the Town.
Transportation funding
SB 044 would require 10% of net revenue from the State’s sales and use tax to be credited to the Highway Users Tax Fund and allocated for State, County and Municipal highway system projects in accordance with an existing formula that allocates 18% to municipalities. CML is supporting this bill, which would provide funding for transportation needs throughout the State. Additional transportation bills are anticipated to be introduced as the legislative session progresses. Staff will continue monitoring these bills, which have in the past been of interest to Council.
Attachment
Attachment A: CML-Followed Legislation as of January 15
Attachment B: Summary of the Public Option Proposal
Attachment C: “How stakeholders are responding to Colorado’s public option proposal”
by State of Reform
Attachment D: News articles regarding public option