Bill to lay foundation for universal care awaits action

Despite financial obstacles, Rep. John Kefalas and his supporters in the Colorado Legislature are steadfastly hoping they can get a bill aimed at ultimately creating a statewide single-payer health-care system signed into law this year.

Kefalas, D-Fort Collins, and Sen. Joyce Foster, D-Denver, are co-sponsoring HB 1273, also called the Colorado Guaranteed Health Care Act. The bill would create the Colorado Health Care Authority, which would design and implement a single-payer health-care system available to all state residents through a phased-in approach.

Kefalas said he expects the bill to be heard by the House Business Affairs and Labor Committee on March 4. And even though state legislators have been wrestling with how to cut more than $600 million from the current budget because of economic woes, Kefalas said he remains hopeful it will be adopted in the Democratically-controlled Legislature.

“I think there’s some growing support for the bill,” he said. “There’s some interesting conversations going on out in the business community to cut health-care costs. We’d like to marry that with the bill.”

In addition to helping the estimated 800,000 uninsured Coloradans get access to health care other than through the emergency room door, the bill is designed to help the state’s small business community reduce ever-increasing health insurance costs for their employees and thereby make those businesses more profitable and competitive.

New authority’s charge

The proposed Colorado Health Care Authority would study:

n Incorporating medical portions of state liability insurance, workers’ compensation insurance and automobile insurance;

n Setting standards and qualifications for health-care providers and provider rates;

n Establishing standards for a statewide electronic records system;

n Establishing a central purchasing authority to negotiate favorable prices for prescription drugs and medical equipment;

n Collaborating with local governments, special districts, critical access hospitals and others to address special health-care needs;

n Setting up a fee or premium structure that “ensures all income earners and employers are contributing an amount that is affordable, fair and consistent with current funding sources for health care in Colorado.”

The Authority would be governed by a 23-member board of directors including health-care professionals, consumers and representatives from business and the health insurance industry.

Board members would be appointed by the governor, president of the Senate, minority leader of the Senate, the speaker of the House of Representatives and the minority leader of the House.

Coverage under the system would be all-encompassing, including primary and preventative care, inpatient and outpatient care, emergency care, prescription drugs, long-term care, mental health services, dental care, substance abuse treatment, chiropractic services, vision and hearing care.

“The plan for the system shall include comprehensive medical benefits for all eligible participants in Colorado,” the bill states.

However, nothing in the current system will change until the Authority can identify enough funding to get the new system up and running. The bill imposes a July 1, 2011, deadline for finding the money from private sources with no money from the state’s general fund to be used.

“We’re trying to set it up with private money because there’s no public money right now,” Kefalas said.

Insurance companies still involved

When Kefalas first announced his plan to submit the bill in December, he was intent on limiting the role of private health insurance companies in the new single-payer system. “This model would clearly limit the role of private insurance companies,” he said in a Business Report interview.

But that stance has softened since he introduced the bill on Feb. 4. “I think we could still have the private health insurance companies involved,” he said Feb. 17. “We need to really bring people to the table.”

Kefalas said it could take $1.5 million or “at least several hundred thousand dollars initially to move this forward.” Kefalas said he had no firm financial commitments but added, “I know there’s a lot of support out there,” citing possible funding from foundations, private donors and perhaps federal money under the Obama administration, which strongly supports health care reform.

Kefalas said that new federal support makes him believe health-care reform can and should start at the state level. “I think it’s very appropriate for the state to push on its end and the feds to push on their end and our efforts can be complimentary,” he said. “We’ve had some success in just introducing the bill, and at a minimum we’re advancing the discussion on how we can accomplish a universal health-care system.”

Kefalas, elected in 2006 and now in his second term, said he will continue to push for health care reform no matter the odds.

“It’s a fundamental issue our nation has been grappling with so many years and increasing numbers of people don’t have insurance because they can’t afford it,” he said. “Clearly, it’s also an economic development issue, especially for small business. If we can reduce costs to business, it will help business be more competitive.”

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