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No free lunch: insurance premiums go up in response to lower insulin co-pays

Summary:
News from Colorado:A new law, signed by Gov. Jared Polis earlier this week, caps co-payments of the lifesaving medication at 0 a month for insured patients, regardless of the supply they require. Insurance companies will have to absorb the balance.  While the Colorado out-of-pocket caps will likely provide financial relief for diabetes patients, she noted "the costs will kick back to all of the insured population" whose premiums are likely to go up as a result.  "Nothing is free," Hernandez said.The saying "there is no free lunch," refers to the the economic idea of opportunity cost.  When Colorado tries to make life better for insulin patients, they also raise the cost of offering health insurance, reducing the number of people with insurance.  HT:  Thomas B.

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News from Colorado:

A new law, signed by Gov. Jared Polis earlier this week, caps co-payments of the lifesaving medication at $100 a month for insured patients, regardless of the supply they require. 

Insurance companies will have to absorb the balance. 

 While the Colorado out-of-pocket caps will likely provide financial relief for diabetes patients, she noted "the costs will kick back to all of the insured population" whose premiums are likely to go up as a result. 

"Nothing is free," Hernandez said.

The saying "there is no free lunch," refers to the the economic idea of opportunity cost.  When Colorado tries to make life better for insulin patients, they also raise the cost of offering health insurance, reducing the number of people with insurance.  

HT:  Thomas B.

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