The state of Colorado has a new plan for insuring an additional 200,000 state residents. They are currently discussing the idea of a new hospital fee, which could bring in extensive funds every year. According to the plan, hospitals would pay a per-patient fee to the state. These fees would then be used to win federal matching funds. According to their estimates, this could bring in an extra $600 million a year. These funds would then be used to expand health insurance programs. Governor Ritter’s office and the Colorado Hospital Association are currently negotiating the details of the plan (including the actual cost of the per-patient fee), but everyone seem to be on board with the idea.

In order to expand health insurance coverage to more Colorado residents, the state plans to make a few significant changes:

• Add more children to the state’s public health insurance program

• Provide benefits to parents of children covered by Medicaid

• Allow disabled adults to buy Medicaid coverage

• Expand eligibility requirements for Medicaid, allowing additional low-income adults to join

• Increase reimbursements to doctors and hospitals who treat low-income patients

Although the concept may sound great in theory, it has never had positive results before. Colorado is not the first state to throw around the idea of hospital fees. And it’s always failed due to two major problems: some hospitals will gain a lot, while other hospitals will suffer; and the American public does not want to pay more for their health care. If hospitals are required to pay a fee for every patient they care for, those fees will most likely be passed on to the patients themselves. And that’s exactly what we’re trying not to do. Health care reform has become such a popular theme because health care costs are already so high. Adding additional charges to these costs will continue to hurt the average patient.

We’re anxiously awaiting the final decision from Colorado. And we’re interested to hear what Colorado residents think about the plan. Will it work? Or will it simply be another failed attempt towards health care reform?