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Colorado Health Exchange Considers Adding Life Insurance

Here is something every independent agent and broker needs to be concerned about...
May 1, 2014

Here is something every independent agent and broker needs to be concerned about. The state health insurance exchange in Colorado is considering adding new products such as life insurance to its offerings, in an effort to generate more cash for itself. Connect for Health Colorado Executive Director Patty Fontneau told lawmakers the exchange would work first with stakeholder and advisory groups before taking any proposal to its board. The comments were made before the Legislative Health Benefit Exchange Implementation Review Committee, where lawmakers have an opportunity to question exchange officials.

Sen. Ellen Roberts (R-Durango) said adding group life insurance is starting to go “far afield from what the exchange was set up to do.” Roberts told Fontneau at the hearing, “So I’d like to suggest that beyond discussing it with your board, you should come back to the legislature and have that discussion here as to whether it’s an appropriate addition to something that was supposed to be a health insurance exchange.”

Later, Sen. Roberts told The Denver Post that with the exchange having been established as an independent nonprofit, the only recourse for legislators might be to pass a bill saying the exchange can’t do it. Sen. Roberts said insurance brokers have complained to her that they would consider the exchange’s incursion into life insurance unwanted and unfair competition. “‘What’s next?,’ a broker asked me. ‘Is it used car sales? Marijuana?’”

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