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.