How will Health Insurance Reform hit Colorado?

Why Colorado needs Health Insurance Reform

Colorado is one of the most adversely affected markets when it comes to health insurance. Though such issues are felt in all the states, experts have noted that the need for reform is particularly acute in Colorado. For example, just about 20% of all people are uninsured - and this is excluding elderly people as well as those who are uninsured for short periods lesser than a year. In addition, more and more employers are starting to reject employer based health care plans. Less than 70% of employers now don't provide this facility.

This situation, along with skyrocketing health costs have led Gov. Bill Ritter to pronounce that "too many Coloradoans are just one illness away from Bankruptcy." Such a situation is not sustainable and the status quo must be broken. A majority of politicians in Colorado therefore vociferously support the pending health care reforms.

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What reform will mean for Colorado

Cost considerations

Health care reform will inevitably lead to lower costs since that's what they're designed for. With everyone having mandatory insurance, there's a larger pool to collect from and that means fewer bad debts, lower administration costs and ultimately lower premiums too since health insurance firms have a larger risk pool. In addition, every single reform plan has mooted the idea of a "Health Insurance Exchange" which is a single marketplace for all insurance plans listed in a comparable manner across state boundaries. The ability to shop and make more informed decisions will allow customers to choose the lowest cost plans.

Improved Competition

Currently in Colorado, the largest health insurance firm has a 35% market share. This leaves very little competition in the market. Health reforms will add a government run policy that will give customers more choice and make the existing companies accountable to their stakeholders including those insured.

Improved Health

Many conditions can be forestalled by simple health screening and preventive treatment. Health care reforms will ensure that such treatments are covered under existing insurance policies thereby improving the overall health condition of the general populace by making such screenings affordable.

Summary

The exact nature of health care reforms in Colorado are still in a state of flux. However, one thing that everyone agrees upon is that things cannot go on as they currently do. Rest assured that health insurance reform is coming, and when it does, Colorado will be in one of the best positions to benefit.

Michael Horvat is a health insurance expert with HealthQuotes.com in Colorado Springs, CO.  If you are searching for health insurance plans or quotes, please give Michael a call  anytime at 800-345-0789.

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