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.
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.
CHC is expected to provide access to coverage for 500,000 additional adults in the state. This means a vast majority of approximately 750,000 uninsured people in Colorado will be able to enroll into affordable plans. Those who already have insurance can also find a new plan if they think it will save them money and provide better coverage.
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.
The exchange also helps do away with some ugly aspects of traditional healthcare under the old system. Preexisting conditions will no longer be a reason for disqualification of otherwise eligible consumers. Providers must enroll those with such conditions at the same premium paid by others, and they cannot refuse to cover the condition in question while enrolling the individual into the plan.
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.
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.
CHC is expected to provide access to coverage for 500,000 additional adults in the state. This means a vast majority of approximately 750,000 uninsured people in Colorado will be able to enroll into affordable plans. Those who already have insurance can also find a new plan if they think it will save them money and provide better coverage.
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.
The exchange also helps do away with some ugly aspects of traditional healthcare under the old system. Preexisting conditions will no longer be a reason for disqualification of otherwise eligible consumers. Providers must enroll those with such conditions at the same premium paid by others, and they cannot refuse to cover the condition in question while enrolling the individual into the plan.
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.
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.