During his 2023 State of the State Address, Gov. Polis emphasized his priority for “Colorado to be a state where everyone can get the (health) care they need easily and affordably.”

The Colorado Association of Health Plans (CAHP) couldn’t agree more with this goal.

However, every session, bills are passed mandating additional coverage that costs Coloradans more for health care – regardless of whether one agrees with the underlying policy or not.

It’s simple math – $96 million. That’s the conservative estimate of the impact from just one piece of legislation passed and sent to the governor this legislative session. SB23-195, the bill at issue, will require commercial health benefit plans to apply drug manufacturer coupons to a members’ deductible instead of applying the actual amount paid by the consumer. On its face, this policy seems laudable as patients deserve access to their medication with the least amount of expense possible.

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However, the truth is that drug manufacturers use these coupons to encourage a patient to take a specific high-priced drug when alternative medicines are available that are less expensive and shown in medical studies to be effective. These coupons do nothing to bring down the actual price of the drug set by the drug manufacturer. In addition, the federal government forbids enrollees in Medicaid and Medicare from utilizing these coupons, deeming them illegal kickbacks because they induce the use of a specific drug. This Colorado legislation, while giving short-term relief, will drive higher utilization of higher-priced drugs, resulting in higher insurance premiums for all.

In addition to SB 195, the 2023 General Assembly passed additional legislation to mandate health carriers in Colorado to cover a host of health care services and drugs off-formulary, while also approving legislation that will increase administrative costs. These bills are in direct contradiction to the goal of saving people money on health care. From 2019 to 2022, we estimate a premium increase of 5%-7% from these types of bills alone.

Gov. Polis recognized this inherent tension in a 2020 signing statement for a bill mandating coverage for infertility treatments, writing, “Additional mandates, which may, by themselves, be important advancements in expanding coverage or reducing long-term costs, often do not meet the second goal of lowering health insurance costs for people today, and can have the unintended consequence of making coverage less accessible to those who need it most.”

As such, we are urging Gov. Polis to veto Senate Bill 195, a bill that would reward drug manufacturers for setting high prices for drugs by steering more people to them. Vetoing this bill will advance affordability rather than creating additional roadblocks, making this goal less attainable.

Saskia Young is executive director of the Colorado Association of Health Plans.