Taxpayer-Funded Insurance Group Funneled Cash Into Liberal Advocacy Groups

A taxpayer-funded health insurance exchange made donations to a number of liberal interest groups, drawing scrutiny from lawmakers, CBS News reported.

Connect for Health made donations to left-of-center groups like the Colorado Immigrant Rights Coalition, the Southern Colorado Equality Alliance, ProgressNow, Young Invincibles and The Steady, according to CBS. Two state lawmakers raised concerns about Connect for Health’s donations after a CBS News Colorado investigation exposed that the state-established nonprofit insurance exchange had been funding liberal political groups, the outlet reported.

The organization sponsored a gala for ProgressNow, a group that says it promotes “progressive ideas and causes” and touts having worked with former President Barack Obama’s campaign, according to CBS.

Almost every top Democratic elected official in Colorado attended the ProgressNow gala, CBS reported.

“A fundraising gala for an overtly political organization just doesn’t make sense,” Republican state Sen. Jim Smallwood told CBS. “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.”

Smallwood, alongside Republican state Sen. Barb Kirkmeyer, is calling for an audit of Connect for Health, CBS reported.

Southern Colorado Equality Alliance says its mission is “bringing LGBTQ and ally communities together through education, advocacy and empowerment for support and inclusion” and engages in pro-LGBTQ political advocacy, according to its website. Colorado Immigrant Rights Coalition seeks to make “Colorado a more welcoming, immigrant-friendly state” through “civic engagement, public education, and advocating for workable, fair and humane immigration policies.”

The Steady, which received an undisclosed amount from Connect for Health, trains Democratic candidates and campaign staffers, CBS reported.

Connect for Health is a 501(c)3 nonprofit, according to tax filings. While 501(c)3 nonprofits can donate to 501(c)4s, political advocacy groups, the funds donated must be used for charitable purposes, not political activities, according to Donorbox, one of the largest nonprofit payment processors in the country.

Smallwood brought forward a bill last year to award an additional $4 million to Connect for Health for education and outreach last year, according to CBS.

Kevin Patterson, CEO of Connect for Health, claims that he doesn’t know how much money his organization donated to liberal advocacy groups, according to CBA.

“I’m not going to try to wiggle out of it. I’m going to be honest,” Patterson told CBS. “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.”

Patterson, Kirkmeyer and Smallwood did not immediately respond to the Daily Caller News Foundation’s request for comment.