Colorado Hospital Association Issues Position on Out-of-Network Legislation

Colorado Hospital Association strongly supports ensuring that patients are informed of their rights and protected from unexpected financial consequences when they receive care.

Katherine Mulready, CHA senior vice president and chief strategy officer explained “The bill’s sponsors said today that they are looking for the ‘sweet spot’ that will bring consumers, carriers, providers and facilities to a compromise. CHA is completely aligned with the goal of this legislation, but we are concerned that the bill as introduced falls short.”

Setting a “default” payment rate for hospitals that are not in an insurer’s provider network will have ripple effects in the market if the default rate is too low. In particular, hospitals may not be able to negotiate as effectively with insurance carriers to ensure fair payments for all of the essential services they provide. Mulready said, “Colorado hospitals agree that the status quo is unsustainable, and hospitals are eager to work with the sponsors to find the desired ‘sweet spot,’ but we cannot shift the market so much that insurance companies lack incentives to fairly negotiate.”

Following on the precedent of the Association’s support for HB 19-1001, there is no doubt we can find a solution when all stakeholders commit to sitting down and working together. Colorado hospitals want to be part of the solution and are committed to working with all sides to develop a solution.

Colorado Hospital Association does not take formal positions on bills until they are introduced. As such, the Association is still assessing the proposed legislation, but has several concerns.

About Colorado Hospital Association

Colorado Hospital Association (CHA) is the leading voice of Colorado’s hospital and health system community. Representing 110 member hospitals and health systems throughout the state, CHA serves as a trusted, credible and reliable resource on health issues, hospital data and trends for its members, media, policymakers and the general public. Through CHA, Colorado’s hospitals and health systems work together in their shared commitment to improve health and health care in Colorado.

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