Colorado Gov. Jared Polis on Wednesday signed into law legislation requiring insurers to offer a standard state-supervised health plan to people and small business. The law also provides for sanctions for hospitals and other healthcare providers that don’t participate in lowering costs.
What was once envisioned as a so-called “public option” to be offered by the state became a plan passed during the just-concluded legislative session that requires premium reductions by 2025 of 15% from plans now offered.
The law gives the state insurance commissioner the power to fine hospitals and healthcare providers. The plan will be developed by the state, insurers and healthcare providers by Jan. 1, 2022. It affects about 15% of Colorado’s insurance market.
Advocates argued the initiative will expand healthcare affordability, especially among underserved communities that include minorities and rural residents.
Opponents claimed it could force many physicians and specialists who refuse to participate to abandon