Colorado's reinsurance program will save people who buy health insurance on the individual market an estimated $493 million next year compared to how much their premiums would have risen without the program, according to the Polis administration. It is said to become.
Statewide, individual market premiums would increase by an average of 5.6 percent, while small group premiums would increase by about 7.1 percent.
Reinsurance is a backstop that limits the amount that insurance companies have to pay out to the relatively small number of people who need high medical costs each year. Because they aren't forced to pay as much, companies charge lower premiums, and as a result, the federal government doesn't have to spend as much on tax credits for people who buy insurance on the marketplace. It disappears. Colorado has received permission from the federal government to use these federal savings to further lower monthly premiums.
A news release from Gov. Jared Polis' office estimates that premiums in 2025 will be about 24% lower than they would have been without the reinsurance program. The amount customers save depends on where they live, their age, and how many members of their family need insurance.
A 40-year-old man saves an average of $1,500 per year by purchasing individual insurance. People living on the western slopes would save more, but the change was smaller near the Front Range.
Open registration for the Marketplace begins on November 1st and continues until January 15th.
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