Connect for Health Colorado is the official name of the Colorado Health Insurance Exchange. It is a marketplace where an individual or small business without coverage will be able to find and enroll into affordable plans. Enrollments are scheduled to commence in October 2013, with plans set to become active no later than the 1st of January, 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.
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.
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 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 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.
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.
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 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.