Bipartisan bill would allow HMOs to offer limited health insurance plans

DENVER - Coloradans without health insurance could have a new option within a few months if state senators approve a bipartisan bill

Despite vocal objections from several key Democrats, Republicans rallied enough support in the state House to pass a measure that would allow HMOs to offer limited benefit health insurance plans.

House Bill 1143, which is the brainchild of Centennial Republican Spencer Swalm, is designed to boost the number of low-cost plans that would cover basic medical care, such as checkups and prescription drugs. Swalm and other legislators argued that the low premiums for such plans will persuade many uninsured Coloradans to buy into the health care system instead of foregoing coverage. Currently, there are about 800,000 uninsured Coloradans.

"The market and the plans themselves will decide what works," Swalm said during House debate Tuesday morning. "This is not perfect insurance, but something is better than nothing."

Swalm said limited benefit plans by HMOs would likely run 20 percent to 35 percent less than full coverage plans, and though employers could simply choose to offer only limited benefit plans, they would run the risk of losing employees to companies with better benefit packages.

Several Democrats complained that such plans have low caps - typically around $50,000 - which wouldn't cover any serious long-term illnesses or injuries. They also worried that many Coloradans will sign up because of the lower cost, without realizing they wouldn't be fully covered if, for example, they were paralyzed in a car accident.

"People will think they have insurance when they don't," said Rep. Anne McGihon, D-Denver. "This is worse than a bait-and-switch. It'll be a bait-and-ditch."

Cancer survivor Rep. Michael Merrifield, D-Colorado Springs, said the plans wouldn't have come anywhere close to covering the cost of his treatment, which he estimated was $250,000. He urged his colleagues to reject the plan as a "distraction."

"It's like putting a Band-Aid on when you cut your arm off. It may stop a little bit of bleeding for a while, but it doesn't answer the major concern," Merrifield said.

The bill passed 40 to 25 after Republicans were able to persuade 13 Democrats to back it.

Among them was Rep. Dennis Apuan, D-Colorado Springs. He called the bill a "good first step," since he believes a much more far-reaching health care reform bill would be costly and nearly impossible to pass during a recession.