Colorado health insurance exchange

Rare bipartisan support leads to state-run exchange

By Carla Anderson
healthinsurance.org™ contributor

Gov. John Hickenlooper informed the U.S. Department of Health and Human Services (HHS) on Oct. 8, 2012, that Colorado intends to operate its own health insurance exchange – or health insurance marketplace. HHS conditionally approved Colorado’s plan on Dec. 7, 2012.

Unlike politicians in most other states, Colorado legislators voted on a bipartisan basis to move ahead with a state-run exchange. The legislation that established the Colorado Health Benefit Exchange passed in May 2011 and was signed by Hickenlooper in June 2011. While many Republicans maintained their disdain for the Affordable Care Act, they supported a state-run exchange as a better option than a federal model.

The Colorado Health Benefit Exchange is governed by a 12-member board and led by Executive Director and CEO Patty Fontneau. The board began meeting regularly in 2011, as did several advisory workgroups. The advisory groups addressed many operational areas: information systems, eligibility verification, enrollment processes, marketing, outreach and the small business exchange.

The Colorado Health Benefit Exchange will operate as a clearinghouse, meaning all qualified health plans will be able to sell policies through the exchange.

The exchange devoted much attention to outreach and marketing in 2012. It initiated a statewide marketing campaign, defined roles and compensation for the Navigator program, and started building a call center. The exchange is looking to rename itself. The exchange posted a survey on its website in early January 2013, asking for feedback on four names under consideration: PlanSmart Colorado, Health Connect Colorado, HealthWise Colorado, and Health Choice Colorado.

The exchange has decided to limit use of the Small Business Health Options Program (SHOP) Exchange to employers with 50 or fewer employees for the first two years (2014 and 2015). Operations (for example, the website and the call center) for the individual and SHOP exchanges will be managed jointly. However, the risk pools will be managed separately.

The Colorado Health Benefit Exchange selected a Kaiser Permanente small-group plan as its benchmark for Essential Health Benefits. The benchmark plan defines the minimum set and scope of benefits that all health plans offered on the exchange must include.

Exchange planners expect 960,000 Coloradans to purchase coverage through the exchange in its first three years of operation.

Updated Jan. 10, 2013

More Colorado health insurance exchange links

Colorado Health Benefit Exchange
The exchange Web site

State Exchange Profile: Colorado
The Henry J. Kaiser Family Foundation overview of Colorado’s progress toward creating a state health insurance exchange.

Affordable Care Act in Your State: Colorado

GettingUSCovered
Bridge program to cover Coloradans with pre-existing conditions until 2014