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.
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.
It is hoped that the establishment of CHC will reduce premiums by around 14-20 percent. This will be accomplished through an expansion of the market combined with competition for customers among providers offering plans in the exchange. Practically speaking, that works out to somewhere in between $1,510 to $2,160 per year in healthcare premium savings for families in Colorado.
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.
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.
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.
It is hoped that the establishment of CHC will reduce premiums by around 14-20 percent. This will be accomplished through an expansion of the market combined with competition for customers among providers offering plans in the exchange. Practically speaking, that works out to somewhere in between $1,510 to $2,160 per year in healthcare premium savings for families in Colorado.
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.
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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