A Common Sense Policy Roundtable study looked into the economic impacts of expanding government-run health care in Colorado in anticipation for the 2020 legislative session.
Basic findings indicate that a public option “Although well-intentioned, such provisions may cause more harm than good.” Results would make health care coverage more expensive for businesses, and quality and access to good health care will go down.
The results of their economic modeling indicate:
- Government price controls will lead to a health care providers receiving $494 million to $1.4 billion less in reimbursements for their services.
- This would lead to a potential loss of 1,500 to 4,500 health care workers across Colorado, exacerbating the state’s existing shortage of primary care physicians, nurses, and other health care providers.
- Colorado’s economy could lose between 2,900 and 8,320 jobs and $320 million to $919 million in total GDP as a result of shifting costs onto employer-based insurance plans and therefore increasing the cost of doing business.
- People will drop their individual health insurance plans in favor of the state option’s below-market premiums at a rate of 80% to 100%.
- A reduction of 2.7% to 8.3% could occur in the employer-provided insurance market, which is the biggest source of health coverage for Coloradans in the state.
Click here for the full report.