HEALTH BENEFIT EXCHANGE

Bill ID: 
SB 200
Branch: 
Senate
Year: 
2011
SB 200, the Colorado Health Benefit Exchange Act, is sponsored by Senator Boyd. It is a uniquely Colorado solution that will help facilitate one-stop shopping for health insurance for more than 350,000 Colorado families and businesses. Here are answers to frequently asked questions:
·         Why does Colorado need a health exchange? A health exchange is necessary to help small businesses and individuals purchase health insurance in a manner that allows them to quickly and easily compare prices and plans.  It has the potential to make the state more efficient and the insurance industry more competitive.
·         What is a health exchange? A health exchange is a single marketplace for health insurance designed to help individuals and small employers in Colorado make informed decisions about purchasing health insurance.  The exchange will offer a choice of plans, facilitate competition to improve quality and lower costs, and offer a simple, navigable interface to help Coloradans purchase the health plans that best suit their needs.
·         Who will buy insurance on the exchange?  At least 350,000 Coloradans will be eligible to purchase insurance on the exchange, according to estimates by the nonpartisan Colorado Health Institute.  The exchange will be designed to serve Coloradans on the individual market and the small employer market.  Coloradans who receive insurance through self-insured and Employment Retirement Income Security Act (ERISA) plans or through Medicaid or Children’s Health Plan (CHP) will not purchase insurance through the exchange.
·         What type of entity will the exchange be?  It will be a quasigovernmental agency that is not a part of the Colorado state government but is nonetheless explicitly charged with serving and being accountable to all Coloradans.
·         When does the health exchange begin to operate?  The current estimate is no later than 2014.
·         Will it cost the state money?  The exchange operations will be funded by grants until at least 2017 and will require no General Fund dollars.