DENVER –  A recent report by The Center Square highlights a new study by Lanhee J. Chen, Ph.D., Tom Church, and Daniel Heil, which finds that the state government-controlled health insurance system known as the “public option” has failed to deliver on its promises in the states where it has been tried, including Colorado.

The study shows that the Colorado Option is failing to deliver on its promises of affordability, they report:

“With particular attention toward Washington State and Colorado, we find that the promise of large premium savings requires setting reimbursement rates for hospitals and providers far below what states appear willing to do,” according to the report. “This unwillingness likely reflects both the political challenges of large rate cuts and the potential effects aggressive rate cuts would have on plan quality and access.” … [T]he report found the cost of coverage isn’t meeting expectations. Approximately 15% of plans met the state’s first-year premium benchmark and fewer plans met the state’s second-year target, according to the report. “In short, policymakers’ unwillingness to accept the inevitable trade-offs has produced plans that are unlikely to attract consumers,” the report said.

To read The Center Square’s report CLICK HERE.

To read the full study, “Promises Unmet: The Early Experience of State Public Option Plans,” which was supported by the Partnership for America’s Health Care Future, CLICK HERE.