The State Government Option Harms Access to Care

A new report released by FTI Consulting with support from Colorado’s Health Care Future found that creating a state government-controlled health insurance option could financially impact hospitals and disproportionately threaten access to care for racial and ethnic minorities. The report reveals that “[o]ver 40 percent of hospitals at higher risk for closure as a result of reimbursement cuts under the state government option serve racial and ethnic minority communities, many of which already contend with significant disparities in health status, access, and outcomes.”

According to the FTI Consulting report, “78 percent of Colorado hospitals would face cuts to reimbursements due to government rate setting under a public option, totaling up to $112 million in losses annually,” putting many hospitals at higher risk for closure – and threatening access to care Coloradans count on.

THE FACTS

Coloradans are relying on our health care system now more than ever. During this critical time, the state government option could threaten access to high-quality care so many are counting on.

Today, racial and ethnic minorities in Colorado comprise one-third of the state’s total population, yet 40 percent of Colorado hospitals that could be at higher risk for closure under the state government option serve these communities.

THE TRUTH

Some lawmakers argue that the state government option could improve access to care for Coloradans, but a growing body of research demonstrates the unintended consequences of a new state government-controlled health insurance system. Rather than starting over, we should build on and improve what is working in health care where private coverage, Medicare, and Medicaid work together to expand access to health coverage and care for every Coloradan.