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.
CHC is one of many such exchanges established in states all over the nation to comply with the requirements of federal healthcare reform bill (PPACA or Affordable Care Act). Under this law, all citizens and legal residents in the U. S. Must have health coverage from 2014 onwards. The exchanges that will start offering coverage in 2014 are the main mechanism used to implement the law.
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.
CHC currently has two core components or areas of operation. One is the marketplace that is to be used by individuals, and the other one is for small businesses that have less than 100 employees. The latter platform, called SHOP, may be opened up to larger businesses with more than 100 workers after 2017, subject to the state approving implementation of this second phase too.
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 federal government is funding the establishment of CHC, and will pay 100% of all operational cost until 2016. Starting from 2017, the state will pay 5% of costs. From 2020 onwards, the state must shell out 20% of CHC's operational costs. All said and done, Colorado is in line to get more than $12 billion in additional federal funding to help with the implementation of this exchange and other reforms.
Not since the New Deal have small business owners and individuals benefited from such a massive expansion of government support for social needs. There's still an ongoing debate over the alleged socialization of healthcare. Organizations and business groups are still protesting the additional costs of providing health plans for uninsured employees. Not to mention the inevitable implementation hiccups and confusion over what changes will take place. Regardless of the other pros and cons, the one thing that makes the Colorado Health Insurance Exchange worthwhile is that everyone in the state will have access to proper healthcare coverage.
CHC is one of many such exchanges established in states all over the nation to comply with the requirements of federal healthcare reform bill (PPACA or Affordable Care Act). Under this law, all citizens and legal residents in the U. S. Must have health coverage from 2014 onwards. The exchanges that will start offering coverage in 2014 are the main mechanism used to implement the law.
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.
CHC currently has two core components or areas of operation. One is the marketplace that is to be used by individuals, and the other one is for small businesses that have less than 100 employees. The latter platform, called SHOP, may be opened up to larger businesses with more than 100 workers after 2017, subject to the state approving implementation of this second phase too.
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 federal government is funding the establishment of CHC, and will pay 100% of all operational cost until 2016. Starting from 2017, the state will pay 5% of costs. From 2020 onwards, the state must shell out 20% of CHC's operational costs. All said and done, Colorado is in line to get more than $12 billion in additional federal funding to help with the implementation of this exchange and other reforms.
Not since the New Deal have small business owners and individuals benefited from such a massive expansion of government support for social needs. There's still an ongoing debate over the alleged socialization of healthcare. Organizations and business groups are still protesting the additional costs of providing health plans for uninsured employees. Not to mention the inevitable implementation hiccups and confusion over what changes will take place. Regardless of the other pros and cons, the one thing that makes the Colorado Health Insurance Exchange worthwhile is that everyone in the state will have access to proper healthcare coverage.
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