Colorado Insurance Commissioner Michael Conway says the state's Colorado Option — a state-sponsored plan requiring payers to sell plans at lower prices — was successful. Insurers say it hasn't reduced prices, the Colorado Sun reported Oct. 26.
The Colorado Division of Insurance said residents will be able to save $14.7 million by choosing Colorado Option plans.
Amanda Massey, executive director of the Colorado Association of Health Plans, told the newspaper most of the lowest priced options in the state for 2023 will not be Colorado Option plans.
The Colorado Option created benchmarks for payers to reach each year. Payers were supposed to reduce ACA exchange plan costs by 5 percent for 2023, but only 1 out of 8 plans hit this target, the Denver Post reported in September.
"There were a number of decisions made that were part of the development of the Colorado Option that would fundamentally make hitting the targets almost impossible," Ms. Massey said.
Mr. Conway told the Sun that the Colorado Option requirements are working to lower costs by forcing payers to "compete with themselves," pricing other plans lower to compete with the Colorado Option.
Read the full report here.