Gov. Jared Polis won a big victory last week when the federal government backed the state’s plan to establish a reinsurance plan. However, it remains to be seen how long lived that victory will be.
Reinsurance programs are designed to help private insurance companies cover the cost of some high-priced claims. Because the companies have their financial risks reduced, that allows them to lower the cost of their premiums.
While new rates under the program won’t be announced until later this year, initial estimates suggest that Pueblo residents could save more than 26 percent, better than the statewide average savings of about 18 percent. Polis said that would translate into an average savings of more than $6,000 per year for Pueblo families.