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

  • 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

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