This November, Colorado residents will vote on Amendment 69, an initiative that would create a single-payer health care system called ColoradoCare. Pinnacol has many concerns about this proposal, primarily the devastating impact it would have on the state’s stable workers’ compensation system. But the effects of the plan will be felt far beyond workers’ comp, with a chilling effect on Colorado’s economy and competitiveness.
According to a report by the nonpartisan Colorado Health Institute (CHI) released earlier this month, the new system “would nearly break even in its first year … but it would slide into ever-increasing deficits in future years unless taxes were increased.” That’s because, despite offering savings on administrative costs, the proposal does nothing to contain the decades-long trend of health care cost increases.
Put simply, ColoradoCare would not be able to sustain itself with the currently proposed 10 percent tax on payroll, retirement and investment income, a rate that would make Colorado the highest-taxed state in the nation.
To cover its ever-increasing costs, ColoradoCare would have limited options: increase taxes, offer fewer health care benefits, increase deductibles or co-pays, or decrease payments to health care providers. All these options would hurt Coloradans.
CHI’s report highlights the sandy financial foundation of Amendment 69, which puts the future of Colorado’s thriving economy on the line.