Panel: Only 1 health plan would cut costs

Single-payer cited but 5th proposal still being studied

David Montero, Rocky Mountain News

Published September 13, 2007 at midnight

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A proposal to put health care in the hands of the government is the only one of five being studied that would save money, a group working on reforming health care in Colorado told lawmakers Wednesday.

That plan, known as the single- payer system, would cut about $1.4 billion of costs from the current $30.1 billion being spent in Colorado on health care.

And of the original four plans - one submitted by insurance underwriters, one by the public employees union, another by health care providers and the single-payer - only the last was shown to cover all of Colorado's legal residents.

Fifth plan still in works

The fifth plan is still being crafted. A first draft must be completed by Sept. 24 so consultants can come up with a model to show what impacts it would have on the state.

Once that happens, it will be tweaked and modeled two more times with different data provided by the Blue Ribbon Commission for Health Care Reform.

The commission has been toiling for months on the fifth proposal, which incorporates elements from the other four plans and includes several new ideas as well.

It would require every legal resident to have health insurance and would create a tax penalty for those who skirted the law.

It also would not require employers to provide health insurance for employees - instead allowing them the option to provide some sort of benefit package for workers.

Some legislators see rush

But some lawmakers worried that the whole process for reform has been rushed.

Rep. Amy Stephens, R-Colorado Springs, said she couldn't see how anything could be put into place by 2008.

"With three months until the session, again when we talk about a good, decent discussion and understanding and education of it, I don't believe we can do that," Stephens said.

"I'm all for the 2009, 2010 commission talking about it."

Stephens also said there was no way she could support the single- payer system and believes the best proposal currently available was the plan written by insurance underwriters - though she admitted it had flaws, too.

Sen. Ken Gordon, D-Denver, said single-payer was the best plan that offered the state savings as well as broader coverage for everyone.

Similar to Mass. plan

With that kind of polarization, it is believed by many that the fifth proposal will be the one that has the best chance to make it to the legislature for consideration in January - though lawmakers could carry any of the five forward or reject all five if they wish.

The fifth proposal shares some broad characteristics with the Massachusetts plan, which took effect earlier this year.

That plan also mandates health insurance coverage for everyone, uses a so-called connector system that centralizes plan choice for everyone and imposes a penalty for not carrying health insurance.

But the commission is still weeding through big stumbling blocks, including getting enough federal funds, deciding how to expand Medicaid eligibility and how to deal with illegal immigrants that go to hospital emergency rooms for care.

Former State Insurance Commissioner David Rivera said there are still "robust discussions" going on about the role employers would play in the new health care system, including whether they'd pay a percentage of their payroll tax in lieu of paying out for private health care plans.

Rivera said the unique element of the fifth proposal would be allowing an employee who changes jobs the ability to keep the same insurance.

In essence, the same insurance policy would follow the employee from job to job.

But Rivera said when everything is analyzed, there are certain goals that must be achieved in the fifth proposal - namely a significant chunk of the roughly 700,000 uninsured Coloradans picking up coverage.

"If we only pick up 2 percent of the uninsured, it's not worth the trouble," he said.

monterod@RockyMountainNews.com or 303-954-5236

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