Cooperate Improves Upon the ACA

Improvement upon Patient Protection & Affordable Care Act: Colorado Health Care Cooperative (SB13-___)
Based on Analysis by Economist Gerald Friedman, Ph.D., Department of Economics, University of Massachusetts at Amherst

Patient Protection & Affordable Care Act Colorado Health Care Cooperative
    More Costly

  • Taxpayers subsidize profit-first insurers; Colorado Health Expenditure (CHE) 14.5% of Gross State Product (GSP) in 2016, 18.5% GSP in 2024
    Cost Savings, More Sustainable

  • Net combined savings to Colorado businesses, government & residents of $4.8 B in 2016, $16.2 B in 2024; lower projected costs to 80% of families
  • Cost Health Expenditure (CHE)14% of GSP in 2016, 14.5% of GSP in 2024
    Higher Employer/Employee Costs

  • Employers and their employees now pay an average 11.8% of payroll for health insurance + medical portion of Workers Comp.
    Reduced Employer/Employee Costs

  • Employer payments decrease to 6%, employees to 3% (total 9%), with Workers Comp medical covered by Cooperative
    Lacks Administrative Efficiency

  • Multi-payer for-profit insurances; ACA administrative costs in 2016 projected at 31% of the $50.5 B Colorado Health Expenditures (CHE)
    Greater Administrative Efficiency

  • Reduced administrative costs result in $3.7 B savings over ACA in 2016 and $6.4 B savings in 2024
  • Member-owned Cooperative has independent board of directors accountable to members. Savings are returned to members or used to improve services.
    Lacks Market Power

  • Requires each insurer/provider to negotiate separate payment rates
    Greater Market Power

  • Permits annual negotiation of global budgets, provider reimbursements, etc. Bulk rates for pharmaceuticals and medical supplies achieve $1.2 B savings in 2016, $3.1B savings in 2024
    Tort Reform

  • Maintains costly defensive medicine practices
    Tort Reform

  • Reduces litigation by eliminating future health care costs, and controls defensive medicine costs
    Less Choice

  • Locks everyone into a single insurer’s limited network of providers
    More Choice

  • Offers full choice of providers, hospitals
    Less Than Comprehensive

  • Bronze, Silver, Gold and Platinum plans provide actuarial values of 60%, 70%, 80% and 90%, with a far less comprehensive coverage standard, and high copays & deductibles
    Comprehensive

  • Covers primary, specialty, hospital, mental & substance abuse, long-term & home care, designated dental, vision & hearing, with no deductibles, minimal copays and a 90% actuarial value – greater benefits than most existing plans.
    Less Integrated Health Care

  • Incentivizes excessive, costly care
    Integrated Health Care

  • Incentivizes primary preventative, quality outcome-based health care Universal
    Less Than Universal

  • 362,666 (8%) Colorado residents remain uninsured in 2016
    Universal

  • All Colorado residents are covered members (following 1 year of residency), providing financial security and eliminating threat of bankruptcy.
View the Full Report

One response to “Cooperate Improves Upon the ACA”

  1. Senator Aguilar

    The Colorado Health Care Cooperative extends Obama’s Affordable Care Act and develops a unique plan for controlling costs while providing accessible health care for all.