What’s happening Now? Current Legislative Updates

The American Rescue Plan Act: March 2021

On March 11, 2021, President Joe Biden signed the American Rescue Plan Act (ARPA). It’s an economic stimulus bill to help Americans and our economy recover from Covid-19.

Check out our post to read more: American Rescue Plan Act and Your Money

The Colorado Option: what you need to know

In 2019, a bill was approved to have a State Option developed and discussed during the 2020 legislative session.

In February 2020, the text for the bill was released. Soon after that, the world pretty much shut down due to Covid-19. The legislature did not complete this bill but it may come back in the future.

In a Nutshell:

The State government would NOT be administrating this insurance plan.

All insurance carriers who offer coverage on the Individual market in Colorado would be required to participate and offer the state option.

All hospitals in the state are required to participate or risk fines and other consequences.

Hospital reimbursement rates are based on a base formula of 155% of the Medicare approved amounts. From there, the hospitals can increase their reimbursement rates based on the following categories:

• Independent and Critical Care hospitals may receive higher reimbursement
• If the hospital serves a high percentage of Medicare/Medicaid patients, they may receive higher reimbursement
• If the hospital strives to manage administrative costs, the underlying costs of care, and already charging reasonable rates, they may receive higher reimbursement

The state option currently is 2 plans: one Bronze and one Silver.

A board of directors will determine the rates and plan structure of the Colorado Option plans.

With a majority vote from the Board, an insurance company could be asked to add their public option to a county who currently has only one insurer.

The purpose of the Option is to increase value-based incentives for hospitals, while decreasing rates across the state. It also aims to increase competition by having more than one insurer in every county in Colorado.