The Denver Business Journal - February 16, 2007
The Senate moved forward a proposal Friday that at least one lawmaker said would increase health insurance premiums.
Senate Bill 49, sponsored by Sen. Jim Isgar, D-Hesperus, allows CoverColorado, the state's high-risk pool, to establish one or more plans to supplement Medicare reimbursement for hospital, medical and other services. The plans would be for people who are under 65 and eligible for Medicare because of a disability.
CoverColorado offers insurance to people with pre-existing conditions who have been denied coverage from commercial insurers. The state Legislature created the program in 1990 as a safety net for these middle-income adults and for children. Participants' premiums, state funds and assessments to some private insurers fund the program.
CoverColorado always will require some kind of subsidy because only people with chronic health conditions participate. Unlike traditional insurers, it can't spread the risk among a broader, healthier population.
SB 49 would require the state to increase its funding of CoverColorado, and Sen. Steve Johnson, R-Fort Collins, is concerned expanding the program will trigger the need for an assessment on insurers more quickly. Insurers pass those assessments onto consumers.
CoverColorado issued a $9.8 million assessment to insurers in 2002. That amount tripled to nearly $30 million in 2003. CoverColorado hasn't issued an assessment recently.
"I don't think we have a sustainable way to fund this long-term," Johnson said.
Isgar said, "It's important to add this class of people to coverage."
The Senate gave preliminary approval to the bill Thursday. It will face a final vote in the Senate before it can be introduced in the House.
