(The Center Square) – Months after Democratic Colorado Governor Jared Polis praised the health care industry’s collaborative response to the pandemic, he joined lawmakers and community members in promoting legislation to further regulate the industry.

“I think everybody up here believes in having great hospitals here in Colorado,” Polis told reporters at a Thursday press conference. “We want to make sure we address all aspects of the high cost of health care. No particular group is being singled out because we're calling out all those that lead to these crises. It's pharmaceutical, it’s hospitals, it's insurers. It's every driver here."

"So this is not something that can be fixed by going after one particular cost driver," he added. "You need a comprehensive approach and of course hospitals are part of that discussion because they're one of the types of major caregivers in our state.”

The legislative package will focus on reducing prescription drug costs, hospital costs, health insurance premiums and strengthening the health care workforce.

Colorado Democrats in 2021 established the “Colorado Option,” which requires health insurance carriers to offer a standardized plan at reduced prices. The program has faced scrutiny from within the industry. 

Democratic Lt. Gov. Dianne Primavera, who mentioned she underwent several cancer treatments as far back as 1988, said Coloradans often experience overwhelming financial burdens from medical treatments.

“We call it financial toxicity, but in simple terms, it's about how the burden of high health care costs can impact a person's quality of life,” Primavera said. “Newly diagnosed cancer patients will use about 30 percent of their income to cover out of pocket treatment costs. For some patients, medical bills can total over $100,000 annually, and cancer patients aren't the only people dealing with these high costs.”

Rep. Judy Amabile, D-Boulder, said communities should be allowed to dictate how nonprofit hospitals allocate surplus revenue.

“Some minimal amount has got to go toward the community benefits that your community actually wants,” Amabile said.

Polis said the legislation should provide transparency and regulate the state’s ability to designate nonprofit status to hospitals.

“What we’re talking about here is representative of modeling, what you need to do to make sure you’re a bonified nonprofit operator in the state of Colorado,” Polis said.

A media release from Polis's office said nonprofit hospitals make billions more than they spend each year and the surplus should be invested back into communities. The legislation would require surplus revenue go toward reducing consumer prices and increase access to health care.

“It’s about what you do with the profits you received,” Polis said. “Again, it’s called nonprofit. It doesn’t mean you make profits. You don’t pay taxes on the profits. But if your revenues exceed expenses, you have a profit. And how that is used is absolutely part of the discussion around what you need to do to be a nonprofit in the state of Colorado.”