HHS Approves State-Based Coverage Option Intended to Lower Premiums in Colorado

The US Department of Health and Human Services (HHS) approved a waiver amendment allowing Colorado to establish a new state-based plan option intended to make health insurance more affordable. HHS announced the news in a press release.

The Colorado Option, approved via an amendment to the Section 1332 State Innovation Waiver, is intended to lower costs for members by leveraging federal funding. Starting in 2023, Coloradans seeking insurance through the individual market or a small employer (<100 employees) will be eligible for coverage under the new option.

"The Colorado Option will help thousands more families sign up for health coverage," said HHS Secretary Xavier Becerra.

Those enrolled in the Colorado Option will have access to primary care, behavioral health services, prenatal visits, and all other benefits required under the Affordable Care Act at no cost, according to the press release.

Additionally, the Colorado Option will establish reduction targets to lower premiums by up to 15% by 2025. This amendment will be implemented alongside Colorado’s existing section 1332 waiver, which is a state-based reinsurance program that has reduced statewide average premiums by 20% since 2020.

The Colorado Option is expected to lower premiums by about $132 per person per month, on average. The amendment is intended to make insurance coverage more accessible to 10,000 Coloradans while reducing racial and ethnic health disparities.

“The Colorado Option is groundbreaking and a step in the right direction to reduce the uninsured rate, while investing in health insurance coverage affordability and improvements, and advancing health equity," said CMS Administrator Chiquita Brooks-LaSure. "We encourage all states to consider innovative ways to use section 1332 waivers in the future to expand and improve coverage and lower costs for their residents."

Reference:
HHS announces historic, first-in-the-nation program that seeks to expand coverage to nearly 10,000 Coloradans. News release. US Department of Health and Human Services; June 23, 2022.