With Enrollment Exceeding Expectations, the Colorado Option Has Secured Affordable, Dependable Care for Tens of Thousands of Coloradans
By Eric Waskowicz
As states across the nation move to expand access to affordable health care, Colorado has led the way with the state’s innovative “Colorado Option’’ standardized health plan. With higher-than-anticipated enrollment rates since its launch earlier this year, the state’s groundbreaking approach is already exceeding expectations by making care more affordable and dependable through increased competition among insurers. Additionally, the Colorado Option is making sure that personalized care is made available to all Coloradans by establishing culturally responsive networks aimed at reducing health disparities. With Governor Jared Polis having also signed HB23–1224 into law earlier this month to further strengthen this program, it’s clear that the Colorado Option is succeeding.
Affordability through Competition
Health care affordability remains a top concern for Coloradans, with nearly one in five Coloradans skipping some form of health care due to cost in 2021. With the average annual cost of health care rising by 4.7% across the nation, these concerns are more than understandable. People across the political spectrum overwhelmingly support action to reduce the price of hospital care in particular, and as United States of Care’s listening work shows, people overwhelmingly want care that is more affordable — and the Colorado Option is helping make that a reality.
Like other state coverage options, the Colorado Option improves affordability by generating competition between insurers. By requiring all private insurers to offer a standardized health benefit plan with identical benefit packages, including free primary care and behavioral health care visits, the Colorado Option allows people seeking coverage on the marketplace access to plans that are understandable, dependable, and affordable.
In addition, the Colorado Option also requires private insurers on the marketplace to meet a series of premium reduction targets to further lower costs for people. As private insurers consider ways to reduce their premiums to meet these targets and remain competitive, all Coloradans reap the benefits of improved affordability — whether they seek Colorado Option coverage on the marketplace or not.
Culturally Responsive Networks
Another critical feature of the Colorado Option is its creation of culturally responsive networks to respond to the unique cultural needs of Coloradans and connect them with providers responsive to these needs. Recognizing that the experience of seeking health care is deeply influenced by an individual’s identity and factors like race, ethnicity, gender identity, and sexual orientation, the Colorado Option seeks to advance health equity by increasing access to essential providers like community health workers and doulas, establishing cultural competency training requirements, and requiring greater language accessibility services.
Receiving care that is culturally responsive is also correlated closely with improved health outcomes and better experiences with the health care system. As states across the nation look to address health care disparities, close attention should be paid to the Colorado Option’s first-in-the-nation culturally responsive networks, and as we look forward to seeing improved health outcomes from these networks, other states should follow Colorado’s lead.
Our Take
The early results suggest that the Colorado Option’s focus on affordable, equitable coverage is highly popular with Coloradans seeking coverage, with approximately 35,000 individuals signing up for coverage during the program’s first year — a goal that far exceeds the anticipated uptake rate of just 10,000. HB23–1224, passed earlier this year to follow up on legislation establishing the program in 2021, builds on this success by simplifying the plan selection process for people and placing limits on insurers’ administrative costs and profits to ensure savings remain in the pockets of Coloradans.
Other states are taking note — in the past several weeks, New Mexico and Minnesota have both passed into law proposals that would, like Colorado, expand access to affordable coverage to tens of thousands of people. Last year, Oregon also joined the mix with their effort to create the Bridge Plan basic health program for people with lower incomes. The momentum behind affordable, dependable care through state coverage options is being felt in state capitols across the nation, and the Colorado Option’s success shows just how much states can gain from this approach.
Click here to learn more about USofCare’s work in Colorado.
Eric Waskowicz is our Policy Manager.
About United States of Care:
United States of Care is a nonpartisan organization committed to ensuring that everyone has access to quality, affordable health care.
Disclaimer:
This article is part of United States of Care’s Medium publication, representing the individual views of the author(s). It does not necessarily reflect the beliefs or positions held organizationally by United States of Care or its board of directors. As a non-profit organization dedicated to ensuring that everyone has access to quality, affordable health care, United States of Care values and seeks out a diverse range of perspectives. We believe in the power of different voices to enhance understanding, empathy, and dialogue about critical health care issues.
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