Simply put, the state won’t be able to cover the costs of ColoradoCare (via 9News KUSA):
The 2016 ballot initiative to give every Coloradan healthcare won’t be able to cover its costs, according to a study released Monday by the Colorado Health Institute.That’s despite the fact that the proposed amendment 69, known as ColoradoCare, would more than triple the amount of taxes collected by the state.
“Simply put, the revenue would not be sufficient,” the report stated. “CHI’s model projects that the revenue from taxes and federal funds would fall just short of paying ColoradoCare’s bills in the first year – with widening deficits in each subsequent year.”
The study suggests ColoradoCare would have to cut benefits, raise taxes or reduce payments to doctors and hospitals to achieve long-term financial solvency. The ballot language would empower the proposed 21-member board to make such decisions.
Amendment 69, the first measure to qualify for Colorado’s 2016 ballot, would replace most private health insurance with a single insurer called ColoradoCare.
By 2028, CHI’s computer model projected ColoradoCare would face a budget shortfall of $7.8 billion.
“It shows that ColoradoCare is financially unsustainable and will bleed red ink virtually from day one,” No on 69 spokesman Sean Duffy said. “The only way they can stop the bleeding is to further limit the accessibility and quality of healthcare or increase their already sky-high taxes.”