Connect for Health Colorado is the official name of the Colorado Health Insurance Exchange. It is a marketplace where an individual or small business without coverage will be able to find and enroll into affordable plans. Enrollments are scheduled to commence in October 2013, with plans set to become active no later than the 1st of January, 2014.
The marketplace was established as required under the federal Patient Protection and Affordable Care Act (PPACA), better known as the health reform act. As per the requirements of this new law, all U. S. Citizens and legal residents must have healthcare coverage starting Jan 1, 2014. Many states are setting up their own exchanges as the main mechanism through which this law will be implemented.
In Colorado, the exchange will bring another 500,000 people into the fold as being eligible for coverage. This eliminates a huge chunk of the state's 750,000 or so currently uninsured residents. Individuals who already have coverage but want to jump to a better plan can use the exchange to shop around and compare plans.
CHC currently has two core components or areas of operation. One is the marketplace that is to be used by individuals, and the other one is for small businesses that have less than 100 employees. The latter platform, called SHOP, may be opened up to larger businesses with more than 100 workers after 2017, subject to the state approving implementation of this second phase too.
It is hoped that the establishment of CHC will reduce premiums by around 14-20 percent. This will be accomplished through an expansion of the market combined with competition for customers among providers offering plans in the exchange. Practically speaking, that works out to somewhere in between $1,510 to $2,160 per year in healthcare premium savings for families in Colorado.
Another advantage of this marketplace is that it eliminates some of the worst excesses under the old system. Among the biggest changes is the fact that providers will no longer be able to turn down applications from people with preexisting conditions. They won't be able to charge higher premiums, or refuse to cover a preexisting condition while allowing the applicant to enroll in a plan that covers said condition for others.
The federal government is funding the establishment of CHC, and will pay 100% of all operational cost until 2016. Starting from 2017, the state will pay 5% of costs. From 2020 onwards, the state must shell out 20% of CHC's operational costs. All said and done, Colorado is in line to get more than $12 billion in additional federal funding to help with the implementation of this exchange and other reforms.
The Colorado Health Insurance Exchange is the biggest change in federal and state assistance for ordinary people and small business owners since the New Deal. The debate over what is being billed as the socialization of healthcare continues, and business associations don't like the additional costs it will impose on them. The implementation of CHC and similar exchanges in other states is likely to face a few bumps as the confusion over the changes is sorted out. However, this cost and hassle pales in comparison to the undeniable fact that most people in the state will end up having access to health insurance.
The marketplace was established as required under the federal Patient Protection and Affordable Care Act (PPACA), better known as the health reform act. As per the requirements of this new law, all U. S. Citizens and legal residents must have healthcare coverage starting Jan 1, 2014. Many states are setting up their own exchanges as the main mechanism through which this law will be implemented.
In Colorado, the exchange will bring another 500,000 people into the fold as being eligible for coverage. This eliminates a huge chunk of the state's 750,000 or so currently uninsured residents. Individuals who already have coverage but want to jump to a better plan can use the exchange to shop around and compare plans.
CHC currently has two core components or areas of operation. One is the marketplace that is to be used by individuals, and the other one is for small businesses that have less than 100 employees. The latter platform, called SHOP, may be opened up to larger businesses with more than 100 workers after 2017, subject to the state approving implementation of this second phase too.
It is hoped that the establishment of CHC will reduce premiums by around 14-20 percent. This will be accomplished through an expansion of the market combined with competition for customers among providers offering plans in the exchange. Practically speaking, that works out to somewhere in between $1,510 to $2,160 per year in healthcare premium savings for families in Colorado.
Another advantage of this marketplace is that it eliminates some of the worst excesses under the old system. Among the biggest changes is the fact that providers will no longer be able to turn down applications from people with preexisting conditions. They won't be able to charge higher premiums, or refuse to cover a preexisting condition while allowing the applicant to enroll in a plan that covers said condition for others.
The federal government is funding the establishment of CHC, and will pay 100% of all operational cost until 2016. Starting from 2017, the state will pay 5% of costs. From 2020 onwards, the state must shell out 20% of CHC's operational costs. All said and done, Colorado is in line to get more than $12 billion in additional federal funding to help with the implementation of this exchange and other reforms.
The Colorado Health Insurance Exchange is the biggest change in federal and state assistance for ordinary people and small business owners since the New Deal. The debate over what is being billed as the socialization of healthcare continues, and business associations don't like the additional costs it will impose on them. The implementation of CHC and similar exchanges in other states is likely to face a few bumps as the confusion over the changes is sorted out. However, this cost and hassle pales in comparison to the undeniable fact that most people in the state will end up having access to health insurance.
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