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State Lawmakers, Lt. Governor Primavera & Colorado Health Care Workers & Providers to Discuss Comprehensive Plans to Protect Safety-Net Providers, Save People Money on Health Care

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Safety Net Providers on The Frontlines of Serving Communities in Denver and Across Colorado Are Nearing Financial Crisis

DENVER — Today, as community health centers and other vital providers struggle to stay open amid tightening budgets, jeopardizing care for many Coloradans, Lt. Governor Primavera partnered with Representative Kyle Brown, Colorado health care workers, and providers to discuss a forthcoming piece of legislation to address the growing cost challenges faced by safety net health care providers while reducing health care costs for state employees and small businesses.

"We've made progress in lowering the cost of health care and insurance for hardworking families but the reality is Coloradans are still paying too much. More work is needed, especially to support our low-cost, high-quality community health clinics," said Lt. Governor and Director of the Office of Saving People Money on Health Care, Dianne Primavera. "This new proposal is a common-sense solution that prioritizes affordability and access while ensuring our safety net providers can continue delivering care to those who need it most."

Coloradans with commercial insurance pay nearly three times what Medicare reimburses hospitals for the same care.

Safety net providers include primary care and family clinics that provide critical health care to communities across Colorado – like seniors, hardworking families, and rural Coloradans.

"We've made important progress to save Coloradans money on health care, and by tackling this issue, we can continue to drive down prices and reduce costs for Coloradans," said Rep. Kyle Brown, D-Louisville. "New legislation I am sponsoring will support our local safety net providers, which often serve our more vulnerable community members, and save small businesses money on health care coverage. We're making it easier for Coloradans to receive the high-quality health care they need, when they need it, while improving the financial health of our safety net and critical access providers."

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"We've worked hard here in Colorado to bring down the cost of health care so that no matter how much you make or where you live, you can get affordable, quality care," said Senator Jeff Bridges, D-Arapahoe County. "With this legislation, we're taking an innovative and proven approach to fund our safety net providers across the state, who are often the only medical providers in their regions. At the same time, our bill will cut insurance premiums paid by small businesses and their employees. By capping hospital payments at an amount below what private insurance can negotiate, but still above what those hospitals need to cover their costs, we can protect our budget while putting those savings directly into the pockets of Coloradans."

"While our multi-year efforts have saved Coloradans money on health care, cost continues to be a barrier to access care in Colorado" said Rep. Emily Sirota, D-Denver. "This legislation supports Colorado's safety net providers, such as community clinics, that provide essential health care to our most vulnerable community members. This bill will drive down costs to the state, save small businesses money, and boost health care access for our neighbors."

"This bill is an innovative way to reduce health care costs for all Coloradans – from our cities to our rural communities," said Senator Iman Jodeh, D-Aurora. "The same medical test or procedure should cost roughly the same thing no matter where you get it or what type of insurance you have, but under current law, health care corporations and hospitals can charge different amounts to different people. This bill is a step toward prioritizing affordable, accessible care for all."

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The new bill, which will be introduced in the coming days following additional stakeholder conversations, will support safety net providers and reduce costs for small businesses by:
  • Establishing reimbursement maximums for in-network (165% of Medicare) and out-of-network (150% of Medicare) on prices paid to certain hospitals through the state employee health plan and the small group market.
  • Establishing a floor for primary care and behavioral health services (135% of Medicare) through the state employee health plan and small group market.
  • A feasibility study is required to explore the option for local governments and school districts to participate in a similar reimbursement limit.

The new bill will be introduced in the House. It will support safety net providers by redirecting funds to critical community health centers and providers that serve Coloradans where and when they need care. State employees and small business owners will save money on health care premiums and out-of-pocket costs without compromising care quality. This bill will also protect the state budget as tens of millions of dollars are expected to be diverted to the health care safety net and to help state employees with minimal impact on hospital margins.

Similar policies in states like Oregon and Montana have proven effective, saving state employees money while relieving budget pressures. Colorado is poised to join these states in leading the charge for equitable and sustainable health care reform.

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