Thursday, June 6, 2013

CCHI finds sufficient choice, no “rate shock” in insurer proposals

A preliminary analysis of proposed individual health insurance plans and rates shows that there will be a robust market and people will be better positioned to afford insurance through Connect to Health Colorado, the state’s new health care marketplace. Insurers filed 150 plans and rates in the individual market and 93 in the Small Business Health Options Program (SHOP) with Colorado’s Division of Insurance on May 15, 2013.
CCHI conducted a preliminary analysis of Connect for Health Colorado one “silver level” individual market plan from each of the submitting 10 insurers: All Savers Insurance Company, Cigna, Colorado Choice, Colorado Health Insurance Cooperative, Denver Health, HMO Colorado, Humana, Kaiser, New Health Ventures and Rocky Mountain HMO. 
Example
Denver Individual Plans
* 27 year old: $207 to $373 per month
* 40-year old: $253 to $454 per month
Denver Family Plan (2 parents age 40, children under 18)
* $756 to $1,360 per month
Most consumers will not pay these prices because low and middle-income Connect for Health Colorado marketplace consumers will be eligible for advanced premium tax credits based on income.  For example, a 40-year old earning $29,000 a year, paying a premium of $350 per month would be eligible for a subsidy of up to $154 per month and would contribute $196 per month for his or her health plan. All the rates have to be approved by the Colorado Division of Insurance, which has 60 days to review the filings. Rates can be disproved for being inadequate, excessive, or unfairly discriminatory.
To learn more, go to the Colorado Consumer Health Initiative.

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