Colorado Gov. Polis: Coloradans Will Save Money on Health Care Thanks to Federal Approval of State’s Reinsurance Program
Today, the
"For the first time in history, Coloradans in the individual health insurance market will save an average of 18.2 percent next year. Finally, we're driving insurance premiums down," said Governor
"We are thrilled to announce that
"This is the culmination of three years of effort," said Insurance Commissioner
"This approval highlights
Reviewing the Plans and Premiums
During the rest of the summer, the DOI will continue to review the plans and premiums for 2020 for the individual health insurance market (for people who don't get their insurance from an employer or a government program) that were submitted by the insurance companies. The final, approved plans and premiums will be made available in late September or early October.
All of the preliminary 2020 facts and figures are available on the Division's webpage for Health Insurance Plan Filings.
What is Reinsurance?
Reinsurance is a program for the individual health insurance market, the seven to eight percent of Coloradans who do not get their health insurance from their employer or a government program. It works by paying a portion of high-cost claims - such as those incurred after major accidents or due to serious health conditions. As insurance companies don't have to pay that portion of the high-dollar claims, they can lower the premiums for individual health insurance plans.
As the reinsurance program brings health insurance premiums down, the amount of money the federal government has to spend on ACA tax credits will also go down. But rather than letting the federal government pocket the money,
Reinsurance Approval Timeline
2017
* SB17-300 High Risk Health Care Coverage Program, passed in Legislature - Directed the Commissioner to study issues related to implementing the program.
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* Issued report on high-risk health care coverage program.
2018
* HB18-1392 State Innovation Waiver Reinsurance Program bill introduced in Legislature; bill dies in the legislature on
* Commissioner testified in support of bill the day after he brought his newborn baby boy home from the hospital.
2019
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* Over a period of five months, the Governor and Commissioner engaged in many meetings with a diverse group of stakeholders and legislators, particularly important was agreement on an appropriate funding mechanism for the reinsurance program.
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* The Governor had multiple conversations with the
* In order to ensure the waiver was approved in time for the 2020 plan year, the
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* HB19 -1168 State Innovation Waiver Reinsurance Program passed the
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