Reinsurance program to lower health premiums by average of 21%, state reports

Reinsurance program to lower health premiums by average of 21%, state reports

By Michael Karlik, (October 8, 2020)

During the open enrollment period for health insurance from Nov. 1 through Jan. 15, the state calculated its reinsurance program will save consumers an average of nearly 21% on their premiums for the coming year compared to what rates would be in the program’s absence.

“A big reason why I ran for Governor was to save people money on healthcare, and I’m excited that we are making progress with 20.8% average premium savings in the individual market from reinsurance, with rates coming down an average of 1.4% for next year,” said Gov. Jared Polis in a statement. “But we can’t rest on our laurels, we must do more to drive down health care costs.”

Colorado’s reinsurance is a fee-based, state-administered program to reimburse insurers up to a capped amount on claims. 

“We’ve staved off larger rate increases, but now is the time to move forward with a public option designed to lower costs and meet Coloradans’ needs,” said Adam Fox, deputy director of the Colorado Consumer Health Initiative, which advocates for equity and affordability in healthcare. “This is especially true with the Supreme Court case that could strip coverage from hundreds of thousands of Coloradans if it strikes down the ACA.”

Fox’s reference was to the Affordable Care Act, the 2010 healthcare reform bill that established state and federal health insurance exchanges, and through which Colorado received its reinsurance program waiver. The U.S. Supreme Court will take up a case that questions the constitutionality of the law.

CCHI also pointed out that the number of counties in Colorado with only one insurance carrier will shrink from 22 to 10. However, rate changes filed with the Division of Insurance will vary significantly, with decreases planned for some parts of the state and double digit percentage increases in others.

Read more on ColoradoPolitics.com

Leave a Reply

Your email address will not be published. Required fields are marked *
You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>