Denver Business Journal
Health insurance bills move through Colo. Legislature Denver Business Journal – February 24, 2009
Two proposals opposed by Colorado health insurance companies but approved by consumer advocates are poised to get out of the Colorado Senate. A bill that requires health insurers in the state to extend dependent coverage to unmarried adult children under 30 was approved by the Colorado Senate in a preliminary voice vote Tuesday. Senate Bill 159, sponsored by Sen. Paula Sandoval, D-Denver, is intended to make health insurance available to young adults whose employers might not offer insurance and who might not be able to afford it without help. Under current law, group insurers must offer dependent coverage for unmarried adult children under 25.
But Sen. Shawn Mitchell, R-Broomfield, opposed the proposal, which he called the “slackers-at-home bill.” Mitchell echoed concerns from health insurers and fellow Republicans that the bill encourages “adverse selection” in the health insurance market and will ultimately drive up already-rising insurance premiums. He said if the bill is signed into law, healthy young people would either waive coverage or get their own policies, while the sickest young adults (who can’t obtain or afford insurance policies because of pre-existing conditions) will opt to get guaranteed coverage from their parents. Mitchell added that the sickest of the sick can get insurance options through government health plans such as Cover Colorado or Medicaid. “Who’s going to take advantage of this? People with the sickest children who will drive up the cost for everyone,” Mitchell said. “How many small employers will find this to be the straw that breaks the camel’s back and say we can’t afford to provide coverage anymore?”
Sandoval said she sponsored the bill in part because the “transition of adulthood is taking longer.” “Sometimes, the first job after college doesn’t provide health insurance,” she said. “But hopefully it does by the time you’re 30.” Sandoval cited estimates that show 53 million young adults in the country are without insurance coverage. She did not have a local estimate available. If given final approval by the Senate, SB 159 moves to the Colorado House of Representatives for consideration.
Another insurance-related bill, Senate Bill 61, also got preliminary approval from the Senate Tuesday. The measure, sponsored by Sen. Morgan Carroll, D-Aurora, requires health insurance companies serving people in the state to use only Colorado-licensed health care providers to evaluate health care claims. It’s currently standard practice for insurers to have claims reviewed from medical professionals, but often the assessments come from other states. Insurance representatives said the measure creates an unnecessary and additional expense for insurers. The bill is particularly problematic in medical disciplines where only two or three such highly specialized physicians exist in Colorado, they argued. Supporters maintained that the bill ensures that doctors who review medical claims are familiar with the state’s medical guidelines and malpractice laws. If given final approval by the Senate, Carroll’s bill moves to the Colorado House of Representatives for consideration.
© 2009 American City Business Journals, Inc.
