Colorado legislators approve bill that addresses regional price health insurance differences

Under the bill, the entire state would be classified as a single geographic district for purposes of health insurance pricing

Insurance News

By Lyle Adriano

Lawmakers in Colorado recently approved a bill to study the feasibility of classifying the entire state as a single geographic district for health insurance policy purposes, reported The Denver Post.

Governor John Hickenlooper is anticipated to sign the bill into law Tuesday.

The bill directs the insurance commissioner to study the impact of declaring the state a single district. The report will focus on five cost areas—diagnostic tests, doctor rates, prescription drugs, surgery, and other healthcare procedures. A report on the study’s findings is due on August.

By declaring the state a single geographic district, mountain country regions charged with steep insurance prices could enjoy lower rates. Inversely, areas in the state that previously enjoyed low rates could see increases as a result of the bill’s adjustment.

The state Division of Insurance has pondered whether a single rate for all of Colorado would be fair to those who currently have low rates.

The study is a rare opportunity to “get under the hood” and see what affects medical costs in the state, said insurance division spokesman Vincent Plymell.

"We are happy to get onto the study," Plymell remarked. "We want to dig into those health care costs as well."
 

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