Colorado Health Insurance Premiums Set for Increases

Health insurance providers in Colorado’s individual market are proposing an average rise of 11% in monthly premiums for the upcoming year.

This year’s premiums had already increased by 22%, but the real burden fell on those who lost their subsidies. According to the Colorado Department of Insurance, the combination of rising sticker prices and a greater share of premiums could essentially double the monthly costs for those enrolled in the individual marketplace if they retain the same plan into 2025.

Opting for plans with higher deductibles could mitigate some of the premium hikes in Affordable Care Act plans, but it may also lead to larger bills if costly treatments are required.

The suggested rates for 2027 require approval from the insurance department, which assesses whether these adjustments are necessary to maintain stability in the market without generating excessive profits.

On a national scale, insurers are seeking a median increase of 14% next year, meaning that some states are requesting increases while others are aiming for decreases.

Throughout the pandemic, Congress raised the subsidy amounts and allowed them to end at higher income thresholds. By the end of December, the subsidy limit was reduced to four times the poverty line, equating to $63,840 for a single individual.

“We’ve consistently warned that without Congress extending the premium tax credit expansions, the market would become unstable, contributing to rising rates,” stated Colorado Insurance Commissioner Michael Conway in a news release. “At the state level, we’ve managed to offer premium assistance to those struggling in Colorado. This effort has kept us in better shape than many other states in terms of insurance coverage.”

Last July, insurance firms proposed a 28% surge in rates. However, Congress enacted a bill to partially replace expiring subsidies and a fund aimed at helping insurers facing unpredicted costs, which helped in reducing the premium demands.

The insurance division anticipated a 25% drop in enrollment due to the rising costs, and as of February, enrollment had seen about a 7% decline.

For next year, Colorado will maintain the same number of insurers, with Cigna exiting while Colorado Access will take over many of the counties previously serviced by Cigna.