News » Local News

Federal government OKs waiver for state reinsurance program


The federal government officially OK’d a reinsurance program that state lawmakers passed this session, meaning health insurance premiums on the individual market are likely to decrease next year.

Colorado health insurance providers expect premiums on individual plans (for those who do not get insurance through an employer or a government program) to decrease by an average of 18.2 percent, according to the state Division of Insurance.

In the Colorado Springs area, premiums are projected to decrease by an average of 15 percent.

The reinsurance program is set up as a state enterprise that covers a portion of high-cost claims so that private insurance carriers can lower premiums. It was contingent on the federal government’s approval of a waiver (granted July 31) under the Affordable Care Act, which allows states to try innovative strategies to improve access to health care.

The program will be funded partly through a special fee assessed to hospitals, and partly by receiving the money the federal government saves on health care tax credits for Colorado’s lower-income families, who will now need far less money to pay for their insurance.

“Bringing down the outrageous cost of health care in our state has been a top priority for my administration from the beginning, and this is a significant milestone on our way toward achieving that goal,” Gov. Jared Polis said in a statement July 31.

Add a comment

Clicky Quantcast