Colorado Health Insurance

If you are one of most Coloradoans who received a 20-30% health insurance rate increase on your personal health insurance plan this year, you are probably wondering how and why this is happening.

A big part of the problem is some irresponsible State legislation that was passed and will become effective in Colorado as of 1/1/11.

As of January 1st, 2011, all personal health insurance plans in Colorado will be required to cover maternity, regardless of whether or not you need maternity coverage.  Additionally, a new law will prevent women from being charged a higher premium for coverage than men.  The combined effect of these two new laws is higher health insurance costs for everyone.

Health insurance companies are expecting a significant drop in covered membership, as single, young and healthy men and/or women who do not want or need maternity coverage decide to go without insurance rather than pay the large increase in cost for insurance coverage. 

The combined cost of the added maternity coverage mandate plus the loss of membership will result in large increases in the cost of your health insurance premiums.   Health insurance companies are already planning for the negative unintended consequences of this legislation and therefore, premiums are rising at a faster rate, I believe, than they would have had this legislation never passed. 

For more details, click here:
http://www.leg.state.co.us/clics/clics2010a/csl.nsf/fsbillcont/A28E94F66888D69A872576A8002891B3?Open&file=1021_enr.pdf

and Here:
http://www.leg.state.co.us/clics/clics2010a/csl.nsf/fsbillcont/79579FABBEFD4A59872576A800281193?Open&file=1008_enr.pdf

I've received the following information about the maternity coverage law that explains, somewhat, how gaming of the new system will greatly affect the cost of insurance.  With regards to insurance company compliance with the new law:

"They can choose to exclude it as a pre-existing condition for up to 6 months; or they can choose to take a currently pregnant woman on with a load to cover the existing pregnancy.  The loads have to be proven actuarially sound and a woman can come on in her 8th month, pay for one month's worth of premium and drop the coverage after the baby is born.  It will also allow a woman who currently has an individual plan to amend to a different medical plan once she finds out she's pregnant, and then amend to the original medical plan (or another) after the baby is born."

-- Edited by Lynne Erickson on Wednesday 7th of July 2010 01:27:51 PM