Colorado Health Exchange Faces Questions

DENVER (AP) — Colorado's state-run health insurance exchange is on track to be self-sustaining by the end of the year, exchange officials said, but they vowed Thursday to improve customer service and make other upgrades during a presentation to state lawmakers.

Connect For Health Colorado presented its annual report and answered questions about its transition to running without federal subsidies, required by the end of the year.

"This organization is still very much a startup organization," said Gary Drews, the exchange's interim CEO.

Drews cited bumps in the exchange's first year — including long wait times for some customers — but compared the operation to a train speeding at 200 mph while still laying tracks in front of it.

The exchange was faulted in a state audit last month for lacking some financial controls, problems the exchange officials vowed to correct.

"We can do better and we know that," said Sharon O'Hara, chairwoman of the exchange's board.

Lawmakers didn't ask much about the audit, though. Instead they wanted updates on the exchange's first full year. Among the 2014 highlights:

— About 120,000 people got health insurance

— 42 percent of the people buying health insurance didn't have any government subsidies, paying average premiums of $287 a month

— 72 percent of the enrollments were single individuals

— Residents of rural counties were more likely to get coverage through the exchange; 10 percent of enrollments were in rural counties, though 8 percent of the state population lived in those counties.

— The mid-range "silver" plan was most popular, accounting for 47 percent of all enrollments.

The response from lawmakers was predictably partisan.

Republicans told exchange officials that people are having bad customer-service experiences. One Republican, Rep. J. Paul Brown of Ignacio, said he and his wife had to bypass health insurance entirely last year because they couldn't afford any of the plans.

"It's just been awful," said Brown, a rancher who took office last week and will now be eligible for the health insurance provided to state employees.

The head of the Senate's Health and Human Services Committee, Republican Sen. Kevin Lundberg, warned exchange managers to brace for the possibility that the entire federal health care law will be dismantled in coming years.

"This is going to change dramatically," he said.

But Democrats generally praised the exchange, saying it's done a good job with minimal problems. Colorado avoided many of the software problems that crippled the federally run exchange.

"Do we all agree on the policy? Absolutely not. But we all applaud your efforts," said Sen. Linda Newell, D-Littleton.

Senators start work next week on a measure to require a more thorough audit of the exchange, a measure exchange officials say they won't oppose.

By Kristen Wyatt, Associated Press

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