Initiative #12 FAQ

Colorado Initiative #12 will complement the federal Affordable Care Act.  It will reduce the cost of health care and include everyone in Colorado.

The Affordable Care Act anticipates that individual states will be innovative in solving the unresolved issues that remain under the federal act and it provides that states may develop alternative systems that expand care and reduce costs.

Funding for the health care system will be provided through individual premiums that will be scaled to income and will not exceed 9% of adjusted gross income.  Premiums will be collected by the Colorado Department of Revenue.  This means that premium cost will be keyed to ability to pay.

Coloradans will be able to select their own doctors, hospitals and other health care providers.

Specific details will be defined by the Colorado legislature, however, it is likely that persons under Medicare will continue to pay their Medicare premiums to the federal government and they would pay a reduced premium to Colorado that should be less than a Medicare supplemental insurance premium.  

The maximum premium rate of 9% of adjusted gross income is projected to provide sufficient sustainable funding for the health care system and is based on the analysis of the single payer proposal presented by Health Care for All Colorado to the Colorado 208 commission.   Other single payer proposals also use the 9% rate to determine revenue.

The 9% maximum premium rate will actually be a savings compared to commercial health insurance premiums when considering both employee and employer contributions to health insurance premiums.