Colorado Health Care Exchange donates to left-wing political interest groups

Two state senators are calling for an audit of Connect for Health Colorado after a CBS News Colorado investigation found the organization gave money to some political organizations and funded political events like galas and helped some organizations policies to raise funds.

Connect for Health receives millions of dollars in taxpayer funding, directly and indirectly. Not only does the legislature allocate money, but insurance companies also make donations to the nonprofit instead of paying taxes on premiums. It also earns commissions on health care premiums when it sells policies.

Its 2023 budget is $52 million, a 9% increase from last year, and its CEO admits some of that money was mistakenly given to political interest groups left-wing, including ProgressNow.

The liberal advocacy group celebrated its 20th anniversary with a $250-per-person gala at Casa Bonita. Nearly every major Democratic elected official in the state attended the event, whose sponsors included a handful of left-leaning organizations, as well as Connect for Health; an organization that is supposed to be non-partisan.

“A fundraising gala for an overtly political organization just doesn’t make sense,” said Republican Sen. Jim Smallwood. He serves on the Senate Health and Human Services Committee and introduced a bill last year giving Connect for Health an additional $4 million for education and outreach, not a political gala. “I think it would be a stretch to try to argue that supporting a political gala or fundraiser somehow contributes to public education and awareness. That seems a bit to me far-fetched.”

ProgressNow is not the only left-leaning group to receive a donation from Connect for Health.

Over the past two years, he has also sponsored a block party hosted by the Colorado Immigrant Rights Coalition, the Southern Colorado Equality Alliance’s Pueblo Pride, the Transgender Day of Remembrance, and the Changemakers Gala hosted by the Young Invincibles, led by the wife of a Democrat. state representative who co-chairs the House Health and Insurance Committee.

“I’m not going to try to get away with it. I’m going to be honest,” Kevin Patterson, CEO of Connect for Health, told CBS News Colorado.

Patterson called the sponsorships a mistake: “We have people, a group of people who work in this space and these are organizations that they tend to work with to put on events, and I think that could be part of the link, but I think you can just hold me responsible for the decision.

Patterson says he doesn’t know exactly how much money Connect for Health has given to political groups like ProgressNow — which received a $1,000 donation for its gala — but he says it won’t happen again: “I view this as a mistake that we made as an organization and we have already taken steps today to make sure this doesn’t happen again.”

Smallwood and Republican Sen. Barb Kirkmeyer, who serves on the Connect for Health oversight committee, also plan to ensure that political sponsorships stop. They will request an audit of Connect for Health.

As a 501(c)(3) organization, it is not permitted to donate to any political entity or risk losing its nonprofit status.

While some of the groups that received money are doing health care outreach, one of the donations went to an organization called The Steady, which trains Democratic candidates and campaign workers.

Open enrollment, for those purchasing health insurance on the state exchange, begins November 1.