Democrats gave up on their last-minute attempt to create a new insurance program for small businesses, fearing it would derail attempts to reform the state’s budget.
Sen. Moe Keller, D-Wheat Ridge, said Senate Democrats agreed to let the program die to eliminate criticism that lawmakers were spending money they didn’t have.
To create the program, Democrats wanted to use money that would come from suspending tax refunds required by the Taxpayer’s Bill of Rights. In November, voters will consider a proposal to suspend those refunds for five years, allowing the state to keep about $3.1 billion.
“I said early on that if indeed it looked like it might jeopardize the referred measure’s passage, then it is worth it to let the bill go,” Keller said.
The Healthy Business Healthy People program called for creating a backup insurance system that would cover catastrophic costs for employees of businesses with 10 or fewer workers.
The initial investment – $15 million – was small compared with the total amount lawmakers are asking to keep, but Republican critics had lined up to contend that Democrats were pushing new entitlement programs.
House Speaker Andrew Romanoff, D-Denver, one of the architects of the budget-reform proposal, said he favored waiting until next year.
“If we had introduced it sooner, I think it would have been possible,” Romanoff said. “I think when people are in doubt, the easiest thing to do is throw it out, and that’s what happens when you wait until the end.”
On Thursday, the House Appropriations Committee voted 10-2 to postpone action on the bill until after the session is over, effectively killing the bill.
Keller noted that Democrats are succeeding with other health care initiatives.
A bill that would set up a multistate drug-purchasing pool, a preferred drug list and competitive bidding for state drug purchases passed the House on Thursday.
Several Republicans urged the defeat of the bill, saying it would hurt people on Medicaid who need specific drugs.
But supporters said Colorado is one of only six states that do not have such lists.
The bill passed the House 37-28 on third reading. But the bill was amended, and concurrence with the Senate version will be required.
Staff writer Art Kane contributed to this report.
Staff writer Mark P. Couch can be reached at mcouch@denverpost.com or 303-820- 1794.