Colorado Foundation for Universal Health Care 2015

Economic Analysis of the ColoradoCare Proposal

By: Colorado Foundation for Universal Health Care
Authors: Ivan J. Miller, Ph.D.
Published: April 10, 2015; addendum added August 3, 2015.
Financed by: Colorado Foundation for Universal Health Care
Legislation analyzed: ColoradoCare


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Summary

Transitioning to a statewide universal health care system would create considerable administrative, market-power, and fraud-reduction savings. Replacing the administration of a multi-payer with a universal health care system is projected to create $8,984 million in expense reductions through lower fees as a result of market power and a reduction in administration and fraud. After compensating for $1,908 million for increased utilization and coverage expenses and the $983 million administrative expenses for ColoradoCare, there would remain a projected expense reduction of $6,093 million.

Coloradans would pay $31,216 million under the current system, and would pay $26,688 million under ColoradoCare, resulting in a health care payments savings of $4,528 million.