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Colorado bill aims to lower healthcare costs by 20 percent or impose state-offered insurance option

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DENVER (KRDO) -- Colorado Democrats unveiled new legislation that would decrease healthcare costs or create a state-offered health insurance program.

The legislation's goal, if approved, would be to reduce health care insurance costs by 20% within about three years and create more competitive options for residents.

On Wednesday, the bill's sponsors spoke about the process and how it will work, saying it was created due to continuing increase in healthcare insurance costs across the state. Representative Kerry Donovan, who represents Colorado District 5, said during the meeting that high costs have led to more Coloradans not having insurance.

"Ninety percent of uninsured Coloradans say that price is the reason that they don't have insurance," Donovan says.

Donovan pointed especially to those in rural areas, and also individuals and small group markets. The small group market is made up of small business employers who provide health care coverage. The individual market is those who buy insurance on their own.

As for how this plan will work, there are two phases. If passed by the state legislature, the first phase would ask healthcare providers such as hospitals, carriers, and drug manufacturers to work in collaboration with each other to reduce costs 10 percent by 2023, and another 10 percent by 2024.

However, if those providers cannot come to an agreement and reduce costs by that time frame, this will lead to phase two. In that phase, the state would create its own offered health insurance option called the Colorado Health Insurance Option. It would be run by a nonprofit entity overseen by nine-board members nominated by the Governor and approved by the state senate. That group will work to set prices for what they would pay to hospitals, doctors, and prescriptions. Those who receive this option would still have to pay premiums but at a lower cost compared to private insurance companies.

"The plan will be at least 20 percent lower than 2021 prices and will be available to purchase on the individual and small group markets,” says Representative Dylan Roberts of District 26.

Roberts says the program would be paid for by patient premiums and by additional federal funding. But that is contingent on getting a special waiver approved by the Biden Administration.

"It doesn't raise anybody's taxes, it doesn't force anybody onto the plan," Roberts says. "All it does is give a new option to about 15 percent of the state."

The bill also requires doctors and hospitals to accept patients with this state option. If they don't they could risk losing their state license.

 Even though the legislation was introduced on Thursday, it has already gained opposition from the health care industry. Commercials airing saying the pandemic has forced them to already reduce costs and this bill would put them over the edge by jeopardizing their ability to operate.

The Colorado Hospital Association is in agreement. Telling KRDO in a statement that phase two of this bill goes too far and will give too much uncertainty.


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Chase Golightly

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