DENVER – It’s Oct. 1, and Obamacare has arrived.
For the majority of Coloradans, today brings no changes.
But for uninsured people and small-business owners, it’s the first day they can shop for health insurance on Colorado’s new online marketplace, Connect for Health Colorado.
The idea is to give people a one-stop shop where they can find a plan that works for them and compare prices among several companies.
It will take months or more to see if the idea works. Success will be judged by how much the exchange drives down costs and helps about 800,000 Coloradans who lack insurance.
In the first year, 136,000 uninsured Coloradans are expected to get insurance either through the exchange or existing government programs, said Ben Davis, a spokesman for Connect for Health Colorado.
As a state-chartered nonprofit, the exchange will have to function on its own, with no government subsidy, by 2016.
“If our doors are open in 2017, it means we provided a service that consumers value,” Davis said.
The exchange will be up and running this morning even with a shutdown of the federal government, Davis said.
Although Obamacare – formally known as the Affordable Care Act – has many features, the heart of the law is a mandate that every American buy health insurance.
People with average or below-average incomes can get a subsidy for buying insurance through the state exchange. Businesses with fewer than 50 employees also can use the exchange.
There’s a tax penalty for people who remain uninsured. But the first year the fine is only $95 – less than the cheapest plan offered through the exchange.
So far, 16 insurance companies are offering more than 100 plans through the exchange. Rates vary for each person and plan.
“Small-business owners will be able to start looking at plans in the exchange and make decisions,” said Tony Gagliardi, head of the National Federation of Independent Business’s Colorado chapter. “Hopefully, we’re going to start seeing a lot more options for small businesses and their employees.”
Gagliardi and the NFIB do not have a reputation for being friendly to Democrats, and Gagliardi doesn’t like a lot about the Affordable Care Act. He regrets that the association of Colorado’s insurance exchange with Obamacare made it a “political hot potato,” to the point that some business owners won’t take advantage of it.
“I’ve had people say, ‘I want no part of it because it is part of the Affordable Care Act,’” Gagliardi said.
Colorado is one of 17 states to set up its own insurance exchange. The federal government will run the exchanges in the rest of the states.
The idea of an online health-insurance market was popular with many Republican lawmakers long before President Barack Obama started pushing for a national health-care law.
The state Legislature approved Colorado’s health insurance exchange on a bipartisan vote in 2011. But the debate sharply divided Republicans, with tea-party members opposing then-House Majority Leader Amy Stephens, R-Monument, who sponsored the bill and said it would be good for small businesses.
For policies purchased through the exchange, coverage will start Jan. 1.
Open enrollment in Connect for Health Colorado ends in March 2014. Starting next year, the annual open enrollment period will be from Oct. 1 to Dec. 15.
jhanel@durangoherald.com
For help
Connect for Health Colorado has a call center open from 8 a.m. to 6 p.m. Mondays through Fridays, and 8 a.m. to 5 p.m. Saturdays. The number is 855-PLANS-4-YOU (855-752-6749). The website is www.connectforhealthco.com
