Two state senators are calling for an audit of Connect for Health Colorado after a CBS News Colorado investigation found the organization was giving money to certain political organizations and funding political functions like galas and helping certain political organizations with fundraising.

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

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

The liberal advocacy group celebrated its 20th anniversary with a $250-per-person gala at Casa Bonita. Nearly every top elected Democrat in the state attended the event, whose sponsors included a smattering of left-leaning organizations, along with Connect for Health; an organization that’s supposed to be non-partisan.

“A fundraising gala for an overtly political organization just doesn’t make sense,” says Republican State Sen. Jim Smallwood. He sits on the Senate Health and Human Services Committee and brought 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 make the argument that supporting a political gala or fundraiser is somehow contributing to education and outreach to the public. It sounds a little far-fetched to me.”

ProgressNow isn’t the only left-leaning group to receive a donation from Connect for Health.

Over the last couple years, it’s also sponsored a block party by the Colorado Immigrant Rights Coalition, Pueblo Pride by Southern Colorado Equality Alliance, Transgender Day of Remembrance and the Changemakers Gala by the Young Invincibles, which is headed up by the wife of a democratic state representative who co-chairs the House Health and Insurance Committee.

“I’m not going to try to wiggle out of 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 folks that work in this space and these are organizations that they tend to work with to do events, and I think that might be part of the tie, but I think you can just hold me accountable for the decision.” 

Patterson says he’s not sure 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’m owning this as a mistake that we’ve made as an organization and we’ve already made steps today to make sure we do not see this occur again.”

Smallwood and Republican State Sen. Barb Kirkmeyer, who sits on the Connect for Health Oversight Committee, also plan to make sure the political sponsorships stop. They will be asking for an audit of Connect for Health.

As a 501(c)(3) organization, it is not allowed to donate to a political entity, or it could lose its non-profit status.

While some of the groups that received money do some health care outreach, one of the donations was to an organization called The Steady, which trains democratic candidates and campaign workers.

Open enrollment, for those who buy health insurance on the state exchange, begins Nov. 1.