We will save money because we will avoid the unnecessary administrative cost of our current way of financing health care like corporate profits and extremely high compensation packages for private health care corporations’ chief executive officers. Also, we will be able to save some money by negotiating drug prices. We can eliminate unnecessary middlemen like Pharmacy Benefit Management organizations that add to our cost of care even though they appear to be saving money. In addition, we will save money because people will be treated earlier and in more appropriate medical settings. For example, instead of a Coloradan waiting until they are in a diabetic coma and going to the hospital emergency room for care, they will get regular non-emergent care from their own doctor to manage their diabetes and prevent a diabetic coma. Also, the Colorado Health care enterprise might provide hospitals with a lump sum at the beginning of the year instead of paying for several individual claims. The hospital would need to live within a budget similar to how you live within a household budget each year. Of course, if there was an unforeseen extraordinary crisis, the hospital would request additional funding from the Enterprise to cover these unexpected expenses.
Home » FAQs » Why would we save money if we paid a premium to a state-owned enterprise for our health care instead of paying premiums to private commercial health insurance companies