Colorado Proposals for Health Insurance Might Cost More Than $1B

Proposals to reduce the number of uninsured Colorado residents might cost more than $1 billion for state residents, employers, and the state and federal governments, according to a report released on Tuesday compiled for the state by the Lewin Group, the Denver Post reports. The 260-page report details the costs and impact associated with each of four plans chosen by the state's Blue Ribbon Commission for Health Care Reform (Human, Denver Post, 8/22).

Two of the plans, proposed by the Colorado State Association for Health Underwriters and the Committee for Colorado Health Solutions, would require all state residents to obtain health insurance. Under the plans, the state would provide subsidies to residents who cannot afford to obtain health insurance. A third plan proposed by the Health Care for All Colorado Coalition would establish a single-payer health care system administered by the state, and a fourth plan proposed by the Service Employees International Union would expand state health insurance programs and establish a large health insurance purchasing pool (Kaiser Daily Health Policy Report, 5/23).

The report found that the SEIU plan would insure 40% of the current uninsured population, mostly through a new limited-benefit plan that would be offered by private insurers. The commission later this year will issue recommendations to Gov. Bill Ritter (D) and the state Legislature based on the report. All four plans are under consideration; the commission could choose to combine two or more of the plans, according to the Post.

Bill Lindsay, chair of the commission, said, "Now we can get a real sense of what happens when you mandate coverage versus making coverage optional; what's the impact of subsidies, of increasing Medicaid coverage?" He added, "These are the details we need" (Denver Post, 8/22).