Dive Brief:
- In 2016, Colorado voters will decide whether or not to pass legislation that would implement a taxpayer-funded universal healthcare program.
- If passed, the measure would opt the state out of the ACA, making Colorado the first state to opt out of the program, reported American Health Line.
- Vermont lawmakers passed a similar measure for universal healthcare in 2011 but ultimately abandoned the plan in 2014 because it was too expensive, reported The Sacramento Bee.
Dive Insight:
Section 1332 of the Affordable Care Act allows states to apply for a waiver from many of the law's requirements to pursue innovative strategies for healthcare reform, as previously reported in Healthcare Dive.
A 10% uptick in Colorado’s payroll tax would fund the state's universal healthcare program, according to American Health Line. State employers would be taxed nearly 7% of a worker’s wages and workers themselves would pay a 3% tax. Neither employers nor workers would pay premiums.
According to The Sacramento Bee, supporters say the plan “will cost $3 billion a year but will save $9 billion in healthcare administration costs compared with the current system.”
Waivers will be available in January 2017.
Because of Vermont’s failure, and a lack of guidance as to what can be proposed via the waiver, expectations for what states will do with this potential opportunity have declined. Maybe Colorado can become a visionary for such waivers. Or at least generate a couple of good headlines.