Cost and Coverage Impacts of Five Proposals to Reform the Colorado Health Care System

By: The Lewin Group, Inc
Published: December 29, 2007
Financed by: The Colorado Blue Ribbon Commission for Health Care Reform
Legislation analyzed: none (plan analyzed developed by the authors).

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The Colorado Health Services Plan (CHSP) would cover 92 percent of all health spending in the state (Figure 7). The remaining 8 percent of spending would consist of out-of-pocket spending and supplemental coverage under public and private programs. Out-of-pocket spending would fall from $4.2 billion under current law to about $1.6 billion under the program. A small number of employers would provide supplemental coverage for services not covered under the CHSP at a cost of about $460 million.

Statewide health spending under the CHSP in 2007/2008 would decrease by $1.4 billion from $30.1 billion under the current system to $28.7 billion (Figure 8). This reflects a reduction in insurer administrative costs of $1.9 billion and a net increase in provider payments of $464 million. These estimates reflect reductions in provider payment levels to eliminate the cost-shift for uncompensated care for the uninsured and anticipated reductions in provider administrative costs.