The Colorado Health Insurance Exchange is officially known as Connect for Health Colorado (CHC). This is a new healthcare marketplace that enables previously uninsured individuals and small businesses to get insured at affordable rates. CHC will start enrolling customers starting Oct 2013, and coverage for those who are newly insured will begin no later than Jan 1, 2014.
The marketplace was established as required under the federal Patient Protection and Affordable Care Act (PPACA), better known as the health reform act. As per the requirements of this new law, all U. S. Citizens and legal residents must have healthcare coverage starting Jan 1, 2014. Many states are setting up their own exchanges as the main mechanism through which this law will be implemented.
About 500,000 previously ineligible people in Colorado will be able to avail of plans using CHC. This eliminates two-thirds of the state's existing contingent of approximately 750,000 uninsured individuals. The exchange can also be used by those who are already insured but want to shop around to find a better plan.
As of now, CHC is starting off with two platforms. One is the marketplace for individuals, and the other one is for small businesses with no more than 100 employees. This second marketplace, called SHOP, may become available to larger businesses from 2017 onwards, if the state so desires.
CHC is expected to cut down healthcare premiums by up to 20%. The competition among providers for the new customers, coupled with the market-based mechanism of CHC, is likely to trigger rate reductions across the board. On average, a family in Colorado can expect their premium costs to drop by about $1,510-$2,160.
Another advantage of this marketplace is that it eliminates some of the worst excesses under the old system. Among the biggest changes is the fact that providers will no longer be able to turn down applications from people with preexisting conditions. They won't be able to charge higher premiums, or refuse to cover a preexisting condition while allowing the applicant to enroll in a plan that covers said condition for others.
The establishment of CHC and all the administrative and operational costs are being borne by the federal government until 2016. The state will be required to pay five percent of costs starting from 2017, and the state's share of expenses will go up to 20 percent from 2020 onwards. Colorado will get more than $12 billion in additional federal funding to deal with the implementation and operational costs of this marketplace.
The Colorado Health Insurance Exchange is the biggest change in federal and state assistance for ordinary people and small business owners since the New Deal. The debate over what is being billed as the socialization of healthcare continues, and business associations don't like the additional costs it will impose on them. The implementation of CHC and similar exchanges in other states is likely to face a few bumps as the confusion over the changes is sorted out. However, this cost and hassle pales in comparison to the undeniable fact that most people in the state will end up having access to health insurance.
The marketplace was established as required under the federal Patient Protection and Affordable Care Act (PPACA), better known as the health reform act. As per the requirements of this new law, all U. S. Citizens and legal residents must have healthcare coverage starting Jan 1, 2014. Many states are setting up their own exchanges as the main mechanism through which this law will be implemented.
About 500,000 previously ineligible people in Colorado will be able to avail of plans using CHC. This eliminates two-thirds of the state's existing contingent of approximately 750,000 uninsured individuals. The exchange can also be used by those who are already insured but want to shop around to find a better plan.
As of now, CHC is starting off with two platforms. One is the marketplace for individuals, and the other one is for small businesses with no more than 100 employees. This second marketplace, called SHOP, may become available to larger businesses from 2017 onwards, if the state so desires.
CHC is expected to cut down healthcare premiums by up to 20%. The competition among providers for the new customers, coupled with the market-based mechanism of CHC, is likely to trigger rate reductions across the board. On average, a family in Colorado can expect their premium costs to drop by about $1,510-$2,160.
Another advantage of this marketplace is that it eliminates some of the worst excesses under the old system. Among the biggest changes is the fact that providers will no longer be able to turn down applications from people with preexisting conditions. They won't be able to charge higher premiums, or refuse to cover a preexisting condition while allowing the applicant to enroll in a plan that covers said condition for others.
The establishment of CHC and all the administrative and operational costs are being borne by the federal government until 2016. The state will be required to pay five percent of costs starting from 2017, and the state's share of expenses will go up to 20 percent from 2020 onwards. Colorado will get more than $12 billion in additional federal funding to deal with the implementation and operational costs of this marketplace.
The Colorado Health Insurance Exchange is the biggest change in federal and state assistance for ordinary people and small business owners since the New Deal. The debate over what is being billed as the socialization of healthcare continues, and business associations don't like the additional costs it will impose on them. The implementation of CHC and similar exchanges in other states is likely to face a few bumps as the confusion over the changes is sorted out. However, this cost and hassle pales in comparison to the undeniable fact that most people in the state will end up having access to health insurance.
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