Coloradans Examine Rate-Setting

Rachel Zenzinger, State Senator, Colorado:

“It seems to me like the proposal is more focused on hospitals, carrying really the burden here of making sure that this plan can get off the ground. I guess I’m interested in hearing from the department. What are we doing? You know, I look at the three ideas that are outlined here. And the three ideas are pharmaceutical rebates, setting hospital reimbursement rates, and raising the medical loss ratio. The medical loss ratio is kind of immaterial cause it’s not having any impact. Pharmaceutical rebates don’t seem to be all that pertinent to the conversation so it seems to me like it’s all really landing on the hospital reimbursement rates. So, I would be interested in hearing, are there ways that we are trying to balance that a little bit with other ideas so that it’s not all landing on that one to make the plan go?”

Rob Hernandez, Former Democratic Colorado State Senator, and Scott McInnis, Former Republican U.S. Representative from Colorado’s 3rd District:

“[Rate-setting] could exacerbate a shortage of doctors and nurses, force hospital closures and push out other insurers from the market.”

Peter Banko, President, Centura Health:

“All the proposed savings would be paid solely by deeply slashing payments to hospitals. Equally concerning is this plan may encourage employers to drop coverage.”

Donald Stader, President, Colorado Chapter of the American College of Emergency Physicians:

“We are concerned about the practice of rate setting and believe rate setting is a dangerous and arbitrary process which may have the unintended consequence of limiting emergency care available to Coloradans.”

John Ingold, Health Care Reporter, The Colorado Sun:

“Colorado’s top insurance regulator on Thursday said he will soon propose a rule that allows him to dig deeper into hospitals’ deals with health insurance companies… This is now the second plan the administration of Gov. Jared Polis is working on that would give state officials the authority to restrict what hospitals can charge. [State officials] are also working on a plan for a public health insurance option.”

Jimmy Sengenberger, President, Millennial Policy Center:

“By shifting the costs onto providers, the public option will force layoffs of health care professionals, reduce access to services, and possibly result in even more hospital closures.”