Gov. Polis joins legislators to highlight bipartisan reinsurance proposal

DENVER - Gov. Jared Polis today joined a bipartisan group of legislators to highlight a reinsurance bill to help lower health care costs. HB19-1168 will reduce insurance premiums for individuals and families. 

“We must address the high cost of health care, especially in our rural and mountain communities,” Governor Jared Polis said. “We have heard from Coloradans across the state about their struggles to afford insurance. This reinsurance program is a strategy that will help provide immediate relief by lowering costs for Colorado families.”

Sponsors include Rep. Janice Rich, Rep. Julie McCluskie, Sen. Kerry Donovan, and Sen. Bob Rankin. The bill would require Colorado to request a waiver from the federal government to implement and fund the program. Eight other states have stood up similar programs.

Rural and mountain communities are significantly impacted by the rising cost of health care. Many individuals and families are forgoing health insurance and health care. The bill will help Coloradans by lowering costs so that people can afford to buy insurance in the individual market.

Reinsurance works by protecting insurance companies against some of their high costs claims. Premium costs go down for everyone when that happens. Once premium costs go down, Coloradans will be able to afford health insurance.

This bill divides the state into three cost reduction regions or tiers. The first tier will be those counties facing the highest insurance costs. Under the reinsurance program, those counties will see premium reductions of between 30 and 35 percent. The second tier of counties will see premium reductions of between 20 and 25 percent. Finally, the third tier, those regions with the lowest costs today, will experience premium reductions of between 15 and 20 percent.