Reject reckless pressure for individual health insurance | OPINIONS

Like many of my colleagues, I view this year’s state legislative conference as an important opportunity to advocate for common sense policies to solve problems and improve the lives of Coloradoans. But as we continue to adjourn on May 8, some lawmakers have chosen to pursue unaffordable, disruptive health care policies Coloradans have already rejected.

I’m sorry to say about HB24-1075, a bill to move our state down the road to health care in Colorado by politicians and officials in Denver. Those pushing for this unnecessary health insurance policy called “single-payer” are doing so even though nearly eight out of 10 Colorado voters rejected the idea at the polls a few years ago. .

Leading up to that election, an analysis by the nonprofit Colorado Health Center highlighted the prohibitive costs of such a system, revealing that it would more than double the state budget, costing Coladans nearly $65 billion per year and spends about $8 billion annually. 2028. It doesn’t take another education paid for by taxpayers to understand the cost of this system that would require higher taxes than anything Coloradans could afford.

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Regardless, we already have an education of what a government-run health insurance system looks like on a small scale, and it’s nowhere near fulfilling what its supporters have promised.

Three years ago, the legislature quickly passed legislation to create the “Colorado Option.” This state-mandated plan requirement has been marketed by many as a health insurance plan that will provide affordable options in Colorado, increase overall health care affordability and strengthen the health insurance market. health insurance.

Many lawmakers, health care leaders and other stakeholders opposed the bill at the time, warning of clear consequences for Colorado from its implementation. As we’ve predicted, not only has Colorado’s option failed to achieve its stated goals, it’s also exacerbating the very problems its supporters said it would solve.

The law created new rate-setting mandates in 2021 that required health insurance companies to drop rates by 5% in the first year, 10% in the second year and 15% in the third year. Unsurprisingly, the arbitrary, government-imposed price mandates did not work.

Three years later, premiums have not gone down. On the contrary, they have gone up. In the 2024 plan year, insurance premiums increased by an average of 10% across plans in each market, following the same increase from 2022 to 2023. In many areas, the Colorado Option is not an affordable option. the lowest for customers – personal health plans are. Therefore, only a fraction of Colorado’s individual insurance policyholders are enrolled in a public option plan, as well as smaller groups.

But wait, there’s more! The Colorado Option pricing mandates are literally disrupting the private insurance market in our state, as carriers are unable to achieve inconsistent, unplanned rate reductions with clear plans. Four insurance carriers have now exited the individual market, the small group market, or both, leaving Coloradans with fewer options for health coverage and making it it seems impossible to attract new small group carriers in our country.

To make matters worse, reduced reimbursement rates to health care providers, on which any government-controlled system depends, will force providers to pass on more costs to consumers or to cut services – another penalty for Colorado patients no matter what they choose.

As a business owner, I know a healthy market creates competition, which in turn lowers prices and empowers consumers. As federal interference continues to distort our state’s health care market, Coloradoans will continue to have fewer options and higher prices to pay. Instead of expanding access to high-quality, affordable health care, lawmakers and state officials in Colorado are doing the opposite.

Yet despite these glaring (and possibly deliberate) mistakes, some of my colleagues continue to push our country even further in the wrong direction, taking further steps towards universal “single provider” health insurance. This reckless approach insists on ripping up Colorado’s existing protections root and branch. There is a better way forward.

I was in the Colorado Senate when lawmakers designed and passed the state’s alternative insurance program. Although I opposed the distribution of wealth I believe the reinsurance program is mandated by law, it has provided early relief to some Coloradoans in high-cost areas. Just this week, Governor Jared Polis signed a bill that I worked on with bipartisan lawmakers in both chambers, to create a group health insurance policy to save thousands of workers. of Colorado real money. The Colorado Option, on the other hand, did the opposite. There is an important lesson to be learned from this.

The Colorado Option showed a one-size-fits-all, federally regulated insurance system doesn’t work. That’s true of the Colorado Option today, and it would be even more evident if policymakers pushed every woman, man and child in Colorado into a single dependent health insurance system. in the foolish hope that doctors and hospitals will agree to lower their reimbursement rates. because the government asks, “please?”

Coloradans deserve a health care system that ensures access to high quality care, affordability and patient payer choice. I urge my colleagues in the state Senate to join me in rejecting this so-called “single-payer education” bill and instead pursue common sense, two-pronged solutions. of making health care a reality for every Coloradan.

Jim Smallwood is the state senator for District 2 in Douglas County, and the Ranking Member of the Senate Health and Human Services Committee.