Colorado’s Cumulative Health Spending Reaches $14B per Year, Nearly Double 1990 Expenditures

Health care spending in Colorado by the government, health plans and individuals has nearly doubled since 1990 to about $14 billion each year, a report by the Colorado Coalition for the Medically Underserved found, the Colorado Springs Gazette reports. Accounting for inflation and population growth, the figure represents a 17.8% increase in personal health care spending per resident. Based on data compiled by the U.S. Census Bureau and the Centers for Medicare and Medicaid Services for 1998, the report found that two-thirds of all health care spending was on care provided by hospitals, physicians or other "professional services." Pharmaceuticals, dental care and nursing home care were other "major" expenditures. Overall, personal health care spending accounted for 10.1% of the gross state product, compared to 11.9% nationally. About 40.2% of the total spending came from the government, while 36.2% was paid by private health insurance (Radford, Colorado Springs Gazette, 8/24). An aging population, an "explosion" in prescription drug spending and managed care's "inability" to control costs help explain the increase, the Denver Post reports. Citing the figures, the coalition "questioned" why the state can't expand coverage for the uninsured. Coalition Chair Dr. Gary VanderArk said, "Based on such a huge annual expenditure, we should be able to provide basic health care coverage to every Coloradan." But others said the increased spending does not indicate there is additional funding for the uninsured but "simply means" health care is becoming more expensive (Austin, Denver Post, 8/24).

CHIP Enrollment Up
Meanwhile, enrollment in Colorado's CHIP program, CHP+, has "soared" to 35,288 through July, the Denver Post reports. Though just over half of the estimated 69,000 children eligible for coverage are now enrolled, the Post reports the number is a "significant" jump from the 25,000 children who were enrolled a year ago. The new enrollment figures come "exactly" one year after Gov. Bill Owens (R) "slash[ed]" premiums for the program. Previously, it had cost up to $360 a year for a family of four to enroll, but now the program has an annual fee of up to $35 for two or more children and $25 for one child. The changes were made temporarily by the administration last August, but the state Legislature voted this year to make them permanent. The state last year lost $19 million in federal funds for not meeting enrollment goals, and the Post reports that state officials are "determined" not to lose any additional funding. "More changes" are also planned for the program, including the addition of dental coverage (Auge, Denver Post, 8/24).

CU to Pay $1.2M for Medicare, Medicaid Overbilling
In other Colorado news, the University of Colorado Health Sciences Center will pay the federal government $1.2 million for overbilling Medicare, Medicaid and other government insurance programs, the Post reports. The federal Office of Inspector General found that between 1993 and 1996, the hospital "improperly coded" claim forms, including charging multiple fees for one test and improperly indicating that patients had pneumonia to receive larger reimbursements. Hospital CEO Dennis Brimhall said the overbilling was unintentional, adding that the hospital discovered the problem after an internal audit and then notified the U.S. attorney's office. The agreement covers a refund of the overbilled money plus interest; the government has waived additional penalties (Sherry, Denver Post, 8/24). For further information on state health policy in Colorado, visit State Health Facts Online.