The official name for the new Colorado Health Insurance Exchange is Connect for Health Colorado or CHC. This is a marketplace where small businesses and individuals that have previously been uninsured can find affordable plans. CHC and other such exchanges across the nation will begin enrollments from Oct 2013, and coverage for those enrolled will become active as of January 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.
The program currently has two components. One is the exchange for individuals, and another one called SHOP for small businesses with no more than 100 employees. Larger companies with more employees will be able access this marketplace starting from 2017, assuming the state approves that too.
Colorado expects healthcare premiums to drop by 14 to 20 percent due to the reform measures. Some of it is attributed to the influx of new customers, coupled with the establishment of the exchange where providers are going to be forced to compete for customers. Forecasts show that the premium amount paid by a family in the state will drop by anywhere in between $1,510 to $2,160 per year.
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 federal government is paying for the entire cost of establishing these exchanges and their operational costs until 2016. After that, the state governments will start paying for 5% of the costs until 2020, at which time the state is expected to start paying for 20 percent of costs. Colorado alone is expected to get additional federal funding to the tune of $12 billion or more for all the expenses associated with the marketplace and other reforms.
There has never been such an expansion of the government-aided social net since the New Deal was implemented. There have been protests about healthcare in the country being socialized, and business groups have been vocal about the additional costs they must face. There's also the possibility that confusion over the proposed changes coupled with implementation problems may cause the transition to be painful. However, what matters most is that the Colorado Health Insurance Exchange ensures that a majority of those previously uninsured will be covered going forward.
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.
The program currently has two components. One is the exchange for individuals, and another one called SHOP for small businesses with no more than 100 employees. Larger companies with more employees will be able access this marketplace starting from 2017, assuming the state approves that too.
Colorado expects healthcare premiums to drop by 14 to 20 percent due to the reform measures. Some of it is attributed to the influx of new customers, coupled with the establishment of the exchange where providers are going to be forced to compete for customers. Forecasts show that the premium amount paid by a family in the state will drop by anywhere in between $1,510 to $2,160 per year.
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 federal government is paying for the entire cost of establishing these exchanges and their operational costs until 2016. After that, the state governments will start paying for 5% of the costs until 2020, at which time the state is expected to start paying for 20 percent of costs. Colorado alone is expected to get additional federal funding to the tune of $12 billion or more for all the expenses associated with the marketplace and other reforms.
There has never been such an expansion of the government-aided social net since the New Deal was implemented. There have been protests about healthcare in the country being socialized, and business groups have been vocal about the additional costs they must face. There's also the possibility that confusion over the proposed changes coupled with implementation problems may cause the transition to be painful. However, what matters most is that the Colorado Health Insurance Exchange ensures that a majority of those previously uninsured will be covered going forward.
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