Polis-Care? Colorado Dems Mandate Health Insurance Price Controls

Colorado Democrat legislators have drafted and plan to introduce a bill that forces a government-run health insurance option for Coloradoans in the event private insurers do not slash insurance prices down to the government-approved price point – whether or not the forced price is profitable or not.

The bill is a resurrection of the bill shelved last March, which was heavily criticized by hospitals and insurance companies, and demands that insurers reduce premiums by 20% by 2024 or face competition from a government-funded insurance option which would be offered at the 20% off price – likely at the expense of Colorado taxpayers.

In other words, if health insurance providers in Colorado cannot or will not slash prices by 20%, the Colorado taxpayers will enter the marketplace as a public insurance option with a mandated, forced lower price – no matter what the conditions of the marketplace are or if the plan loses money for Colorado taxpayers. This “option” would be administered by the so-called Colorado Option Authority, a non-profit entity consisting of nine board members. In true 2021 politically correct fashion, the board would be forcibly “diverse.”

While they have yet to take an official position, the Colorado Hospital Association has already expressed concern with the proposed bill, which they rightfully see as an unhelpful and costly interference in the market.

Colorado Dems seem to believe they can dictate market conditions from on high through coercing and threatening insurance providers. They fail to understand that insurance companies actually want to sell insurance, and are happy to take business from each other through lower prices if possible. When and if the Colorado government forces these companies to sell their products at a loss, millions of Coloradoans may lose their insurance.