Healthcare

Last year the legislature proposed a fix to the outrageous cost of insurance in the High Country and the Western Slope. A system of insurance districts, nine of them across the state, limited the risk pools for insurers and drove up costs by reducing competition. The proposal was to have the state back a reinsurance plan, where the highest cost cases could be backed by the state. The cost, $20,000,000. Well it worked. Kind of. Actually it did make it possible to have a couple more options in the market and rates went down over 15%. But rates along the Front Range went up by almost 20% and the cost skyrocketed to over $160,000,000. The figures offered by the Governor and the proponents of the bill were incredibly wrong.

 

Looking Ahead



Now the Governor and Democrats want us to approve a “public option” for healthcare. They say it will be managed by a private insurer and will add competition to the marketplace. Sadly they don’t even understand that concept. The state will again be the guarantor for those insurance plans and will function to limit risk. The plan will require cost setting by hospitals and will limit options for care and there will be a requirement that all sorts of new treatments will be corvered.  And guess what, other insurers will not be able to compete. They won’t have the protection from risk and they won’t have all the options for care and so we will see a reduction in competition in the marketplace. And the cost will be enormous. 

Like so many things, if it sounds too good to be true, it probably is.

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