Crowdfunding concept. Colorado’s reinsurance plan reduces the cost of more expensive procedures by helping pay for them, in return for which insurers agree to reduce their premiums. (Photo: Shutterstock)

With the looming expiration of a tax on health care plans that was part of the Affordable Care Act and helped individuals cover the cost of insurance on the private market, Colorado lawmakers are considering legislation that will levy new fees on insurers and hospitals to help fund a reinsurance program that currently assists about 1 million Coloradans with heath insurance coverage. 

The legislation would place a 1% fee on premiums collected by nonprofit health insurers and 2.5% fee on for-profit carriers. It would also require hospital to pay about $20 million over the course of two years, a substantial decrease in the $80 million Colorado hospitals are due to pay under the state’s current reinsurance plan.       

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Greg Land

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

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