Colorado has several laws in place to help those without health insurance.
According to the "Denver Business Journal," a 2008 U.S. Census Bureau report highlighted the rate of Colorado's uninsured residents over the age of 19 as 17.7 percent. Many Colorado residents who lack health insurance pay cash for medical care out of necessity. Other individuals also may choose to pay cash for health services. Colorado health laws aim to protect consumers who do not have coverage through a health insurance plan.
Discount Health Plans and Medical Cards
A discount health plan or discount medical card is a program that provides its members, who must pay membership fees, with a list of medical service providers who charge discounted rates. Some providers require payment in full at the time of service or even require the patient to pay in cash. Under Colorado law, discount health plans must clearly tell consumers that they are not health insurance plans. The Colorado Division of Insurance warns consumers that since discount health plans do not qualify as credible health coverage, consumers may lose coverage of pre-existing conditions for a certain period of time if they later buy a health insurance plan.
Medical Savings Accounts
According to the Colorado Department of Revenue, state law allows employers or employees to establish medical savings accounts. The employer, the employee or both can contribute tax-free money to be used toward the account holder's medical expenses, as well as the expenses of the account holder's spouse and dependents. The maximum yearly amount for an account established under state law is $3,000. The account holder can pay cash for eligible medical expenses and receive reimbursement from funds held in the medical savings account.
Mandatory Health Insurance
In 2010, Colorado voters debated passage of Amendment 63, a constitutional amendment that would exempt state residents from any mandatory requirements to buy public or private health insurance coverage. According to a 2010 "Huffington Post" article written by Brian T. Schwartz, supporters argue that the amendment would protect the right of consumers to pay cash for medical care. Schwartz advocates for the right of individuals to make their own health coverage decisions.
Tags: account holder, discount health, health insurance, cash medical, cash medical care
