Why both hospitals and insurance companies are so worried about a Colorado “state option” plan
In what is shaping up to be the major health care battle at the state Capitol this coming legislative session, Colorado hospitals and insurance companies both have raised concerns about a proposal to dictate hospital prices for a slice of people with private health coverage.
The idea, unprecedented across the country in its precise details, is part of an ambitious plan to create what Colorado health officials are calling a “state option” insurance program. The program would aim to lower insurance costs for people who buy coverage on their own.
It would largely achieve those lower rates by limiting how much hospitals can charge people covered by state option plans, which would be sold and administered by private insurance companies. Both hospitals and insurance companies would likely be required to participate in the program, though state officials have been vague on whether they have the authority to compel participation or whether they would need to ask the legislature for that authority.
Either way, the state-option proposal has found hospitals and insurance companies — frequent foes in the battle over health costs — sharing unusual common ground.
Read more via The Colorado Sun.
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