Colorado lawmakers are preparing a vote on a state-sponsored health plan that would compete with private insurance and offer lower premiums. The governor has the idea of reducing health care costs at the top of his agenda, creating an Office of Saving People Money on Health Care. Colorado follows in the wake of Washington, which already has a public option, and joins Delaware, Massachusetts and New Mexico who have their own proposals. Colorado’s
state-sponsored plan would start in 2022 and target the 7% of the population that buys their own health insurance, with premiums 11-17% below market. The state will target hospital costs in a transparent manner, replacing carrier negotiations, and also limit carrier profits and their budget for administrative expenses. Hospitals are not happy and have proposed their own idea that would limit total health care spending without interfering in the privately negotiated rates between insurers and hospitals.