Gov. Polis signs laws aimed at lowering health care costs

Three bills aimed at lowering the cost of health care in Colorado were signed into law Friday by Gov. Jared Polis.

Colorado legislators worked during the assembly session to pass bills that would create a publicly supported health insurance option , create a reinsurance waiver program to offset high-cost insurance claims, and give more options to healthcare cooperatives.

What does it all mean? Lawmakers and Polis hope that they’ll provide relief to families in the Centennial State who are increasingly spending more money on health insurance, especially families in rural communities. Many in the state are paying up to a third of their income on monthly insurance premiums, according to Colorado House Democrats.

The reinsurance program works by using government money to help with high-cost insurance claims, and the goal is to reduce premiums for everyone since insurers won’t have to shell out as much money for high-risk customers.

HB19-1004 lets the state start developing a public health insurance option, which should provide competition in areas that have few insurers. Lawmakers hope to have the insurance available for purchase by fall of 2020.

SB19-004 lets healthcare cooperatives incorporate consumer protections like “coverage for preexisting conditions,” according to a news release by Colorado Democrats. Those healthcare cooperatives can then negotiate rates with insurance companies on a collective basis, which should lower premium costs.

“The formation of health insurance co-ops across our state where Coloradans collectively negotiate rates directly with providers will help drive down the cost of health care,” said Rep. Dylan Roberts. “This new law will authorize the formation of these co-ops which could result in plans that are significantly cheaper than those available today.”