Colorado launches new health insurance option

Colorado launched Colorado Option: an insurance plan administered by private insurance companies, but with the state mandating certain benefits and an overall reduction in premiums over time. Kaiser Health News reported on the plan's rollout. State officials seem intent on gaining better value by insisting on both richer benefits and price reductions. The option apparently requires "unlimited free visits for primary care, mental health care, substance use, and perinatal services, as well as coverage of diabetes supplies like glucose monitors and syringes at no cost," which seems more generous than most insurance plans. Starting with the second year, plans that do not achieve premium reduction targets are subject to review by the Division of Insurance.

It is unclear how much pressure the review will exert. A state representative that sponsored the legislation seems to believe that insurance companies will try hard to avoid the rate review, but what is not apparent is how much more information those reviews will reveal than is currently available to state regulators. Regardless, it is good to see state governments trying to find new solutions to rising health costs.