Rebecca Boyle | The Tribune
June 8, 2008
Colorado motorists who are unfortunate enough to be injured in a crash will have one less thing to worry about thanks to a bill signed by Gov. Bill Ritter late last week.
Or they'll have one more thing to worry about. It depends on your perspective.
Ritter signed Senate Bill 11, which will require every auto insurance policy issued in Colorado to have $5,000 of medical payments coverage, known as "med pay." It has an opt-out clause, too, so people who determine they don't need the extra coverage don't have to get it if they don't want it. But now they will have to have the option.
The law will help motorists, especially those who don't have health insurance, by offering enough money to cover the cost of a typical ambulance ride, for instance. Those who do have health insurance could use the med pay to cover their deductible or out-of-pocket expenses.
But the new system also is likely to increase the cost of insuring your car.
Colorado ended its long-standing no-fault auto insurance program in 2003 and switched to an at-fault system. Under the old system, a driver injured in a crash would have his medical expenses covered by his own insurance, even if it wasn't the driver's fault. Under the newer system, the at-fault driver is responsible for payment, and before payment can be made, someone has to determine whose fault it was.
Medical payments coverage became optional under the new system, and many motorists either thought they didn't need it or decided to save money on premiums by going without it.
But some drivers who don't know about that or don't buy enough coverage can't afford their medical bills. They can sue the at-fault driver, but that might not matter if the person at fault doesn't have much money.
That has meant trauma care providers are often unpaid because the injured motorist can't afford to pay.
The Trauma Care Preservation Coalition, a group of ambulance companies, hospitals and other emergency services providers that formed to address the problem, said the system has cost hospitals and ambulance companies millions of dollars in unpaid bills, and that translates to higher costs for patients who can afford to pay.
In 2002, under the old system, hospitals were reimbursed for about 60 percent of the care they provided to motor vehicle accident patients, according to a report commissioned by Ritter's office in February. By 2006, that number had dropped to 36 percent, the report found.
Reverting back to a mandatory med-pay system will ensure that more of those expenses are covered -- $5,000 worth, at least.
Ritter said the bill would help consumers and emergency services providers.
"Almost everyone has out-of-pocket medical expenses, such as co-pays and deductibles, which could be paid for by medical coverage in the event of an accident," he said in a statement. "Senate Bill 11 will help ensure that every Coloradan has the coverage that he or she needs and that ambulances, physicians and hospitals are paid for the critical care that they provide."
But that comes at a price.
Mandatory extra coverage will likely drive up insurance premiums, said Alan Miller, assistant public affairs manager for State Farm Insurance, based in Greeley.
"We were opposed to SB11 from the standpoint of, as much as we are happy to sell people our products, we don't feel people should be forced to buy additional insurance that they may not need, want or, frankly, be able to afford," he said. "This bill will require people to buy additional insurance."
Though they can opt out, Miller said many people don't, not only because they think they have no choice but because that option requires a written declination of the coverage. That will result in higher costs for everyone, as insurers are forced to carry more policies.
Since the at-fault system went in place, auto insurance premiums decreased throughout the state, up to 35 percent, he noted.
"That's really what moving away from no-fault was designed to do. With no-fault, it was so out of control; there were so many things that had been added on that, that it was becoming so expensive. It was just skyrocketing," he said.
Industry representatives said things like massages and even aquariums were covered under the old system, because they were considered rehabilitative. While SB11 won't reintroduce those kinds of problems, rates will likely creep skyward, Miller said.
"I think we've hit the bottom, and because of these legislative mandates, we're going to be seeing rates go up," he said.
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« School's out for summer ... and it will look different when you get back
Across-the-board tuition increases approved in the past week mean that students will have to pay even more next year to attend schools like Colorado State University and the University of Northern Colorado. But they can take comfort in one area: The campuses will look prettier.
Northern Colorado lawmakers were instrumental in finagling new ways to find extra money for projects at CSU, UNC and Front Range Community College, among others.
Gov. Bill Ritter signed a bill last week that will allow UNC to proceed with renovations to Butler-Hancock Hall, home to the athletics department.
Nate Haas, spokesman for UNC, said the money will pay for renovations to academic areas, including a classroom addition, upgraded electrical wiring and reconfiguring locker rooms to maximize space. The building will also get air conditioning, which does not currently exist throughout.
"The hope was that the facility would be more marketable for private users, and of course for the community who attend events there," he said.
He said the renovations had been on UNC's master plan for a couple years.
It was the first project on the state's list and will cost $11.591 million.
State Rep. Jim Riesberg, D-Greeley, is on the powerful Capital Development Committee and helped push for the legislation that allows the extra spending.
Two Fort Collins institutions will also see funding under the bill. Front Range's Larimer campus will get a hefty $14.81 million to pay for a science classroom addition and renovations.
CSU's monstrous Clark building didn't make out with as much -- just around $2 million -- but it'll be enough for "revitalization," which could mean fresh paint and carpeting.
The money will be available thanks to Senate Bill 218, a bipartisan measure sponsored by Western Slope lawmakers that alters the way Federal Mineral Lease revenues and bonus payments are allocated. According to Ritter's office, the measure creates two new funds to support higher education, one for construction and another for maintenance. Existing FML beneficiaries, including K-12 education, local communities impacted by oil and gas drilling and the Colorado Water Conservation Board, will also reap millions of dollars under the new law.
Last month, Ritter signed a companion measure, Senate Bill 233, which allows the state to issue certificates of participation backed by SB218's new revenue streams. Those certificates, which are similar to bonds, will amp up funding for more than a dozen higher-education construction projects around Colorado.
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