Anyone who has dealt with a health insurance claim knows the mountains of paperwork and endless “please hold” music all too well. Most people dread having to call their health insurance provider for anything-you get the runaround and only seldom come out with a solution that’s halfway decent.
Our current health insurance system spends $6.2 billion each year on unnecessary administrative expenses-not to mention obscene CEO salaries.
The total cost of the current insurance industry in Colorado is $31.2 billion-$6.3 billion of which comes from out of pocket costs to Colorado families for procedures and expenses not covered by their current health insurance plan.
ColoradoCare covers everyone with comprehensive health care services and leaves $4.5 billion more in Coloradans’ pockets.
Under ColoradoCare, out of pocket expenses are estimated to decrease by $4.3 billion-that’s money that stays in your family’s pockets.
So where exactly do these savings come from? How is it that the ColoradoCare plan is able to do so much more with less?
By cutting out insurance industry administration expenses of approximately $4.6 billion and reducing provider administration expenses by an estimated $2.3 billion, ColoradoCare streamlines the process and puts more health care dollars into health care instead of paperwork.
ColoradoCare also has the ability to save $1.2 billion from bulk purchasing power and an additional $700 million by reducing fraud via a unified billing system.
These savings would provide $1.9 billion more health care services and reduce health care expenses for Colorado families by $4.5 billion.
The Institute of Medicine estimates that the United States health care system wastes $765 billion every year! That’s more than one-fourth of the total health care expenditures in the United States, and more than 24 times the total cost of Colorado’s health care right now!
The Institute of Medicine estimates that $190 billion of that waste comes from excess administrative costs and another $340 billion from inefficiently delivered or unnecessary services.
This explains why the number of physicians has doubled since 1970, while the number of administrators has increased about 3,300 percent! In fact, administrative jobs are the fastest growing profession in the health care industry!
ColoradoCare is a chance to right the ship. We can cut back on the exorbitant costs of the status quo health insurance system and put health care dollars back where they belong: in people’s health.