June 4th, 2021 – In a largely partisan 19-16 vote, Colorado’s Senate passed the “Colorado Option” last week. The Bill has the potential to effect individuals and families who buy their own insurance, as well as Colorado small businesses.
The new law is a hybrid private/public option in which insurance companies would be required to sell the Colorado Option statewide. If signed into law, the new bill gives the state authority to regulate how much providers are paid to achieve premium reductions that could be as much as 15% by 2025.
The head of the Colorado Division of Insurance gains authority to dictate payment rates for the Colorado Option plans to hospitals and doctors. The Senate removed the requirement that doctors be penalized, if they do not accept the Colorado Option plan, but there is some conflicting language that needs to be sorted out to satisfy doctors.
The Bill heads back to Colorado’s House for consideration of the Senate’s amendments. The final step will be for Governor Polis to sign it into law, which it is almost certain he will.