Bill for next session to try to bring stop loss insurance/reinsurance back into Colorado

(Jamie Glover MD) #1

At the CAFP meeting, John Bender MD thanked everyone for the fabulous work on the DPC bill! He wanted to let us know ahead of time that he will be submitting a bill next year. In some other states, stop loss insurance has been one way that employers can provide wrap around insurance through companies like Allied National. But we have a law on the books that discourages these companies to come to our state. He will introduce a bill to lower the attachment point from $40K to $10K to entice reinsurers to come back to our state. He gave a good description of how stop loss insurance can work with DPC for employers, even smaller employers with 25 employees. It is hard for me to recollect it all exactly, but it made sense. Basically, the employer would cover the first $10K of every employees health insurance expenses and then after that be able to use a smaller company (a non-Blue Cross, non-Aetna, non-United type company… like Summit Re or Munich Re) to cover catastrophic things through a reinsurance policy. And then employers incentivize use of a DPC over urgent care or ER visits because there would be a charge (say up to $1K) to use the ER or urgent care, but going to the DPC would be “free” or covered by a defined contribution (HRA?). It is working well for employers in other states and they can now afford insurance for their employees again without going out of business. Dr. Bender felt that the insurance industry in Colorado may not care and also that this may be under the radar of the Div of Ins so it may pass next year or the next if he introduces it. Anyway, just wanted to post that here since he wanted every to be aware so you all have a chance for input. I hope I didn’t massacre the intent and explanation. Further questions probably best to John. I’m just trying to act as secretary for this one meeting.

(Robin Dickinson) #2

@j.glover1 Thanks for being secretary this time. Definitely trade off that role next time! But I appreciate you doing it.

Do you know if CAFP is supporting this bill? And did anyone mention the reasons people will be against it? If not, I’ll ask Ryan Biehle.

@rocky_mountain_group Any opinions on this bill? I figure there will always be two sides but I’ve never even heard of this so not sure what to make of it

(Dr Phil Eskew, DO, JD, MBA) #3

Can someone provide a link to the bill?

(Jamie Glover MD) #4

There is no bill yet. John Bender MD of Ft Collins said he planned to introduce such a bill next year/next session. He was just telling us about it in the forum of this meeting for transparency and in case we wanted input. He did not want to take the Colorado DPC community by surprise with it next year.

(Jamie Glover MD) #5

It actually made sense to me and of course, I have only heard one side, but I would like for there to be various options for wrap around insurance so in general, I thought it sounded good.

(Robin Dickinson) #6

I’m increasingly realizing how important what we do is as it sets the precedent for other states. As the state with the most DPCs (and growing!), we have a responsibility to the rest. Thanks for the info provided so far Jamie! I’ll check with Ryan (Biehle with CAFP), he can usually send me more information.