No Mandate to Purchase Health Insurance in Colorado

Thanks to new tax laws scheduled to take effect on January 1, 2019, individuals will not be penalized for not purchasing a government-approved health insurance plan. While this is excellent news for millions living in America, four states are restoring the individual mandate: Vermont (in 2020), District of Columbia, Massachusetts and New Jersey. Several more states are also considering restoring this requirement.

Colorado will have no individual mandate, and changes to that rule will not happen for the foreseeable future.

For Coloradans, the news gets better. Even if an individual mandate is restored, it can be avoided altogether. Learn more about the Affordable Care Act and the options you have.

The Affordable Care Act Hurt Many Consumers. That Changed.

Provisions in the Affordable Care Act of 2010 made health insurance an excellent way to pay for medical expenses for those who had affordable coverage options but came with penalties of up to $10,000 or more if Coloradans refused coverage or were underinsured. However, when the tax overhaul was passed, that penalty was wiped away as was the forced insurance mandate.

Consider this: When you enroll in a government-approved health insurance plan, costs can sometimes far outweigh the benefits. That’s because when the government makes insurance mandatory, insurance companies can charge what they want since you’re obligated to pay it.

Now that the coverage mandate is gone, many Coloradans are looking for lower-cost alternatives available on the health insurance exchange.

With No Mandates or Penalties, What Options Do You Have?

Today, no laws in Colorado are stopping you from carrying health insurance. So, what options are available to those who want affordable medical coverage?

Health sharing plans: While not insurance, these have been around since the early-1990s and are suitable for persons wanting affordable care without mandates. Prices are much lower than health insurance, and you can choose plans that are catastrophic only or plans that cover major procedures, medications and routine office visits.

Short-term plans: Short-term health insurance, or temporary health insurance, is available to bridge gaps in health care coverage when transitioning between different insurance types. People in Colorado have used this form of coverage when switching between traditional coverage and health care sharing plans.

Or, remain uninsured: This quite risky option is available to everyone and is free of charge. If you take this risk, always tell your healthcare provider that you are a cash-pay patient and try to negotiate the best price possible. But understand that you could be legally liable for some high bills if a catastrophic health event occurs.

Colorado’s relaxed laws on health insurance make enrolling in alternative plans more attractive than ever.

To review your 2019 health insurance options or options outside of traditional health insurance, call us at: 800-913-3416 for a consultation with one of our Personal Benefits Managers.

  Date posted: Sunday, September 30th, 2018
Category: Health Insurance, Individual Mandate

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