Colorado a step closer to adopting health reinsurance plan

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DENVER (AP) - Colorado is a step closer to creating a program to lower health insurance premiums on the "Obamacare" individual market.

If approved by Washington, a state reinsurance program could help about 250,000 Coloradans who buy health coverage on the market set up under former President Barack Obama's health care law.

Reinsurance allows private insurers to lower premiums by having the state take on their highest-cost cases.

Federal officials say Colorado's application for approval is complete. A final decision is expected within 180 days.

Gov. Jared Polis signed a bipartisan bill in May to create the program.

It seeks to lower premiums on the individual market by 21 percent statewide starting next year.