Modern Healthcare: Colorado unveils hospital rates for its public-option plan

Colorado officials on Monday unveiled the state's formula for hospital reimbursement rates under the state's proposed public-option insurance program.

The Colorado Health Insurance Option formula's base rate is 155% of Medicare rates, but hospitals' individual rates would vary based on hospital type, payer mix and how efficiently they deliver care. Colorado hospitals could cover the costs of providing care at 143% of Medicare rates, according to a state analysis of 2018 Medicare payment data collected by the Colorado Hospital Association and the Colorado Healthcare Affordability Sustainability Enterprise board from the state's hospitals.