The waiver authorizes a program that other states have successfully used to lower insurance premiums.
The Centers for Medicare & Medicaid Services signed off Wednesday on Colorado's request for a waiver to run a reinsurance program.
The decision means Colorado has the federal government's approval to run the program for two years, beginning January 1, 2020. The approval was granted under Section 1332 of the Affordable Care Act.
Colorado is the ninth state to secure such a waiver for a state-run reinsurance program since 2017, and several other states have applications pending, according to the Kaiser Family Foundation.
The reinsurance programs have been shown to effectively lower health insurance premiums in Alaska, Minnesota, and Oregon.
Steven Porter is an associate content manager and Strategy editor for HealthLeaders, a Simplify Compliance brand.