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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 was established as one a compliance requirement for states under the Affordable Care Act or PPACA, which is perhaps better known as the healthcare reform bill. The law requires all legal residents and citizens residing in the United States to be provided health insurance starting from 2014. The exchanges being established in individual states are among the core components of the reform.
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.
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 establishment of CHC and all the administrative and operational costs are being borne by the federal government until 2016. The state will be required to pay five percent of costs starting from 2017, and the state's share of expenses will go up to 20 percent from 2020 onwards. Colorado will get more than $12 billion in additional federal funding to deal with the implementation and operational costs of this marketplace.
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.
CHC was established as one a compliance requirement for states under the Affordable Care Act or PPACA, which is perhaps better known as the healthcare reform bill. The law requires all legal residents and citizens residing in the United States to be provided health insurance starting from 2014. The exchanges being established in individual states are among the core components of the reform.
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.
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 establishment of CHC and all the administrative and operational costs are being borne by the federal government until 2016. The state will be required to pay five percent of costs starting from 2017, and the state's share of expenses will go up to 20 percent from 2020 onwards. Colorado will get more than $12 billion in additional federal funding to deal with the implementation and operational costs of this marketplace.
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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