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.
In Colorado, the exchange will bring another 500,000 people into the fold as being eligible for coverage. This eliminates a huge chunk of the state's 750,000 or so currently uninsured residents. Individuals who already have coverage but want to jump to a better plan can use the exchange to shop around and compare plans.
As of now, CHC is starting off with two platforms. One is the marketplace for individuals, and the other one is for small businesses with no more than 100 employees. This second marketplace, called SHOP, may become available to larger businesses from 2017 onwards, if the state so desires.
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 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.
The Colorado Health Insurance Exchange is the biggest change in federal and state assistance for ordinary people and small business owners since the New Deal. The debate over what is being billed as the socialization of healthcare continues, and business associations don't like the additional costs it will impose on them. The implementation of CHC and similar exchanges in other states is likely to face a few bumps as the confusion over the changes is sorted out. However, this cost and hassle pales in comparison to the undeniable fact that most people in the state will end up having access to health insurance.
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.
In Colorado, the exchange will bring another 500,000 people into the fold as being eligible for coverage. This eliminates a huge chunk of the state's 750,000 or so currently uninsured residents. Individuals who already have coverage but want to jump to a better plan can use the exchange to shop around and compare plans.
As of now, CHC is starting off with two platforms. One is the marketplace for individuals, and the other one is for small businesses with no more than 100 employees. This second marketplace, called SHOP, may become available to larger businesses from 2017 onwards, if the state so desires.
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 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.
The Colorado Health Insurance Exchange is the biggest change in federal and state assistance for ordinary people and small business owners since the New Deal. The debate over what is being billed as the socialization of healthcare continues, and business associations don't like the additional costs it will impose on them. The implementation of CHC and similar exchanges in other states is likely to face a few bumps as the confusion over the changes is sorted out. However, this cost and hassle pales in comparison to the undeniable fact that most people in the state will end up having access to health insurance.
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