The Revamped Public Option Bill:
Still on a Collision Course with Government Rate-setting and Medical Provider Budget Cuts
|
|
The latest public option bill will be heard again in the state Senate early next week. This latest report focuses on two specific elements that remain in the bill and why they will lead to the types of economic impacts and unintended consequences CSI’s previous analysis has modeled.
1. Low premium rate growth caps increase the probability of triggering state medical provider rate setting.
2. The base medical provider reimbursement rates in the bill would be close to the lowest, if not below the lowest statewide average private insurance payment rates in the country.
|
|
Key findings:
- Under a scenario where the cost of treating patients grows at 6% annually but the cap stays at 2.9%, the premium reduction target from the actual baseline is 27% lower in 2025 and 37% lower in 2030.
- In effect, this means the real premium reduction target under HB21-1232 may be 1.5 to 2 times greater than is widely understood.
- Based on research by authors at RAND Corporation, the 155% base rate specified in the Colorado option plan would be lower than all of the 46 states in the study.
- Because HB21-1232 imposes more stringent rate-setting with a lower payment limit falling to 135% of Medicare for specific service lines, the budget cuts facing Colorado medical providers under HB 21-1232 would likely be even greater the previous CSI modeling of impacts.
|
|
Recently Introduced Tax Reform Bills: HB21-1311 and HB21-1312 |
|
Did You Know?
Colorado Budget just signed = +$4B
Next Year General Fund Revenue Projection = +$765M
Unemployment rate = 6.4%
HB21-1311 and HB21-1312 = $205M net tax increase
Have to ask “Why Now?”
|
|
Recently introduced tax reform bills, HB21-1311 and HB21-1312 would eliminate or reduce 12 different tax deductions and increase four. The net effect is not revenue neutral, but rather a $205 Million net increase. |
|
Chris Brown
Vice President of
Policy & Research
Common Sense Institute
|
|
HB1232 - Colorado Public Option
The major health care reform bill passed its first committee in the senate earlier this week. The most substantive changes to the original bill were made on the house floor, though not for a lack of trying. Of the 14 amendments introduced in the Senate Health and Human Services Committee only four passed. The bill is expected to be debated on the senate floor possibly next week.
HB1286 - Building Benchmarking and Performance Mandates
Energy reduction mandates remain part of this bill despite limited information on the impacts to owners, operators or their tenants. The bill is expected to move to the Senate in next week or so. Read the bill here.
SB1260 - Transportation Funding
The much anticipated transportation funding package will be heard in its second committee next week. If passed, the bill is expected to raise $200M in 2024 and $5.3B over the next decade to fund transportation-related projects. Read the bill here.
|
|
ICYMI: Facebook Live with Chris Brown and Joey Bunch |
|
CSI went live on Facebook!
Watch the recap video as CSI's Chris Brown and Colorado Politics's Joey Bunch have a candid conversation about what's happening down at the Capitol and how they'd spend $3.9 billion dollars!
|
|
CSI Board Member Spotlight |
|
Top Workplaces in Colorado 2021
CSI Board Member Byron Haselden's company, Haselden Construction was named one of the best midsized companies to work for in Colorado. Haselden Construction is a top general contractor on the Front Range.
www.denverpost.com
|
|
Road to Recovery Series
CSI Board Member Dave Davia spoke to the challenges facing one of Colorado’s fastest growing occupations and the benefits of improving access to credentialed education courses in the state at CORBT's Road to Recovery event.
www.cobrt.com/events/
|
|
30th Anniversary with Junior Achievement
CSI Board Member Robin Wise has reached a major milestone. 30 years with Junior Achievement (JA). To honor Robin, some of JA's current and past Board Members and some other friends recorded messages for her and shared memories from over the years.
www.jacolorado.org
|
|
Support CSI through Amazon Smile! |
|
Want to help make a difference while you shop in the Amazon app, at no extra cost to you?
Simply follow the instructions below to select "Common Sense Institute" as your charity and activate AmazonSmile in the app. They'll donate a portion of your eligible mobile app purchases to us!
How it works:
1. Open the Amazon app on your phone
2. Select the main menu (=) & tap on "AmazonSmile" within Programs & Features
3. Select "Common Sense Institute" as your charity
4. Follow the on-screen instructions to activate AmazonSmile in the mobile app
|
|
OPINION: Public Option or Colorado Option? HB-1232 is...
Washington so far is the only state to have passed public option insurance last year and the reviews are mixed, according to CSI. The ACA marketplace average premium has lowered 6% nationally, and 30% in CO, while WA has a 15% increase since 2018.
Read more
www.montrosepress.com
|
|
|
|
|
Report: $500 million investment into PERA could save...
“A one-time investment into Colorado’s PERA using funds from the state’s increased revenue could mean substantial long-term savings for taxpayers over the next decade, according to a new report from CSI.
Read more
kiowacountypress.net
|
|
|
|
|
|
Common Sense Institute analyzes updated government...
CSI issued its latest analysis around premiums and the proposed public option before the legislature, finding that proposed caps on premiums are well below the projected growth of of medical costs.
Read more
www.coloradopolitics.com
|
|
|
|
|
High-quality affordable childcare is the key to keeping...
Kristin Strohm, president and CEO of CSI, said that the overall workforce in Colorado is down 4.4 percent, compared to 1.7 percent nationally, she explained. As of March, Colorado’s unemployment rate remained flat at 6.4 percent.
Read more
villagerpublishing.com
|
|
|
|
|
|
'She-cession' fueled by the pandemic, sidelining moms...
We are at stake of losing generations of progress for the working woman in our country,” said Kristin Strohm, the president and CEO of CSI in Colorado.
Read more
www.thedenverchannel.com
|
|
|
|
|
|
Common Sense Institute weighs benefit of investing...
CSI looks at the benefits of putting a combination of money from the state budget surplus and federal stimulus directly into the state's PERA, which manages the retirement money for roughly 620,000 Coloradans.
Read more
www.coloradopolitics.com
|
|
|
|
|
|
THE PODIUM | Lawmakers will squander windfall
As the federal government continues to administer the relief legislation, billions more will flow into the state. CSI reports that Colorado’s share of the three pandemic-related federal relief packages will total approximately $65.2 billion all told.
Read more
www.coloradopolitics.com
|
|
|
|
|
|
As the Colorado Option evolves, stakeholders weigh...
CSI has been following the potential economic impacts of the Colorado Option. Chris Brown, VP of policy and research at CSI, said that it has been good to see the negotiation between bill sponsors and stakeholders.
Read more
www.bizjournals.com
|
|
|
|
|
|
Want more?
Check out the latest news featuring CSI Here.
|
|
Follow Us on Social Media |
|
Compelled? Support our Work |
|
|
|
Donate to
Common Sense Institute
|
As a 501(c)(3) nonprofit, we rely on gifts from people passionate about Colorado like you. Supporting CSI now, will help ensure the continuation of sound economic analysis that policymakers, business leaders, and voters need to make educated and common sense decisions.
|
|
CSI relies on individuals, associations, and corporations to support our mission to research and promote common sense solutions for economic issues facing Colorado. Click below to learn more about supporting our work and our donor levels.
CSI is a 501(c)(3) tax-deductible organization, we do not accept government funding.
|
|
|
|
|
|
|
