The creation of statewide district would likely lead to modest premium increases for consumers in Colorado’s largest metropolitan area, where prices are relatively low. However, it could yield a significant price reduction in the state’s sparsely populated mountain regions, where residents pay some of the highest health insurance premiums in the U.S. For instance, in Glenwood Springs, Colo., some supporters of a single district say their insurance premiums are comparable to their mortgage payments.
The state’s Division of Insurance has questioned whether it is fair to impose a single district for the state if it means people who currently pay less will have to pay more.
The bill directs the insurance commissioner to evaluate the impact of creating a single geographic rating area for health insurance in the state. A report on the commissioner’s findings is due in August, according to the Denver Post. The report will focus on five cost areas, including prescription drugs, physician rates, diagnostic tests, surgery and other hospital procedures.
More articles on payer issues:
UnitedHealthcare exits Maryland market, other insurers seek rate increases
4 observations on ACA performance and results
Mich. expands Medicaid eligibility for Flint water exposure
