Does Colorado Mandate Residents to Carry Health Insurance?

The Affordable Care Act (ACA), sometimes called Obamacare, requires that every Coloradan carries health insurance or has minimum essential coverage. However, the current penalty for not having health insurance is zero. And while you must indicate your health coverage status on your tax return, you still won’t have to pay anything for not having coverage.

Various states across the U.S. have different rules regarding health insurance. Some have even passed exclusive laws regarding health plans, but fortunately, Colorado has none. If you’re interested in health coverage, experts from DesignTM Health have prepared an in-depth guide detailing the available options. Read through!

Minimum Essential Coverage (MEC)

Under the Affordable Care Act guidelines, you must have health insurance coverage that qualifies as minimum essential coverage. Some of the plans that meet the ACA guidelines include:

  • Employer-provided insurance –This is a health plan purchased by your employer, and it covers you and your dependents.
  • Individual health insurance plan – This is coverage that you purchase on your own as an individual or a family.
  • Health First Colorado – Previously known as Colorado Medicaid, Health First Colorado is a public health insurance program for Coloradans who qualify. This program is sponsored by the federal-state partnership and managed by the Colorado Department of Health Care Policy and Financing.
  • Child Health Plan Plus – This is a low-priced health insurance coverage designed exclusively for pregnant mothers and children. It covers individuals earning higher than Colorado Medicaid Program’s threshold but still too little to afford private health insurance coverage.
  • Medicare – Is a national insurance program for older citizens—65+ years. It also caters to certain younger persons with disabilities and those with end-stage renal disease (ESRD).
  • TRICARE – It is a government-funded health insurance policy for men and women in uniformed service plus their families. It also protects members of the National Guard and Reserves and their families.

Technically, most people need to carry health insurance coverage. This applies to young children, adults, and any individual who has a child or a dependent. However, there are exemptions to these requirements. Certain groups are exempted from obtaining insurance coverage, including:

  • Individuals who would use more than 8 percent of their total income for insurance
  • People who qualify for services via an Indian Health Services provider
  • Individuals eligible for hardship exemption programs
  • Americans who are uninsured for less than three months of the year
  • Anyone who is not legally present in the United States

Why Is Health Insurance Coverage Important?

For Coloradans, having health insurance coverage is essential for many reasons, such as:

  1. If you unexpectedly fall sick or get injured, health insurance will help cater to your medical expenses. Plus, if you get hospitalized due to a severe illness, your insurance provider will cater for all the hospitalization expenses like accommodation, laboratory tests, treatment, catering, and more.
  2. Another good reason to get covered is that your policy can extend coverage to your family, including children, spouse, or parents.
  3. The medical landscape is constantly evolving as the cost of treatment goes up. Having a proper medical coverage helps you deal with potential medical inflation.
  4. Purchasing a suitable health plan can also help safeguard your savings. Medical costs can be expensive and can easily send you to bankruptcy in extreme situations.
  5. If your medical condition requires you to deal with specialists where consultation cost is high, and there’s a need for regular checkups, your plan will cover these expenses.

Need a Reputable Insurance Provider for Your Health Coverage? Contact us Now

Health insurance coverage is an essential requirement for all Colorado residents. Protecting yourself and the people you love from medical surprises that can leave you financially crippled is fundamental.

At DesignTM Health, we will thoroughly assess your insurance needs to offer you the most suitable coverage for you and your family. Please contact us online today or give us a call at 720-330-2283 to speak to our insurance professionals.

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