Crowdfunding concept. Colorado'sreinsurance plan reduces the cost of more expensive procedures byhelping pay for them, in return for which insurers agree to reducetheir premiums. (Photo: Shutterstock)

With the looming expiration of atax on health care plans that was part of the Affordable Care Actand helped individuals cover the cost of insurance on the privatemarket, Colorado lawmakers are considering legislation that willlevy new fees on insurers and hospitals to help fund a reinsuranceprogram that currently assists about 1 million Coloradans withheath insurance coverage. 

The legislation would place a 1% fee on premiumscollected by nonprofit health insurers and 2.5% fee on for-profitcarriers. It would also require hospital to pay about $20 millionover the course of two years, a substantial decrease in the $80million Colorado hospitals are due to pay under the state's currentreinsuranceplan.       

Continue Reading for Free

Register and gain access to:

  • Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Greg Land

Greg Land covers topics including verdicts and settlements and insurance-related litigation for the Daily Report in Atlanta.