Changes in Colorado’s Health Insurance Marketplace

In 2027, Colorado’s individual health insurance marketplace will see a new option after three years, although one existing option will be lost.

Cigna Healthcare recently announced that it will exit all states where it provides individual plans, which means current customers will need to look for different insurance options next year.

Meanwhile, Colorado Access is entering the marketplace, covering 14 counties, including most of the regions previously served by Cigna. Currently, Colorado Access manages the Child Health Plan Plus in 45 counties and Medicaid in four counties: Adams, Arapahoe, Denver, and Douglas.

The state’s marketplace has faced challenges this year.

The expiration of higher subsidies that were implemented during the pandemic at the end of December has increased the portion of income that many customers must allocate toward their monthly premiums. The state legislature has taken steps to partially address these changes by providing $80 monthly for people earning less than four times the poverty line, and an additional $29 for their dependents.

As of February, around 18,000 fewer individuals in Colorado had selected and paid for a plan in the first two months of the year, marking a decrease of about 7%, according to federal data.

On a national scale, the average enrollment drop was 12%, varying significantly—Ohio and Oklahoma saw declines of more than 32%, while New Mexico was the only state to experience a 14% increase in enrollment.

Annie Lee, the president and CEO of Colorado Access, indicated that the state’s efforts to stabilize the marketplace made it feasible for their organization to join. She noted that many Medicaid members might lose coverage next year due to new eligibility verification requirements, which would likely funnel them toward the individual marketplace.

Unlike Cigna, Colorado Access operates without shareholders and is not trying to engage in multiple marketplaces. Lee commented on their strategy to avoid rapid growth that could lead to overextension.

“We’re a local nonprofit,” she stated. “We’re different.”

Cigna explained that since the individual marketplace constituted a small part of its overall business, it was logical to discontinue that line of services and focus on its primary objectives.

The last new carrier to join the marketplace was Select Health in 2024. Over the past five years, three companies have exited the marketplace: Friday Health, which completely unraveled; Bright Health, which withdrew from the individual market nationwide; and Oscar Health, still operational in 11 states.

This year, Cigna had offered plans in multiple counties including Adams, Arapahoe, Boulder, Broomfield, Denver, Douglas, El Paso, Jefferson, Larimer, Teller, and Weld.

Colorado Access will provide insurance in nine of those areas, excluding Larimer and Weld, and will also serve Clear Creek, Elbert, Gilpin, Park, and Pueblo counties.

Despite these shifts, the marketplace remains competitive, aided by legislative actions aimed at cushioning the impact of declining subsidies, according to Kate Harris, chief deputy commissioner at the Colorado Division of Insurance.

“For most people, the number of plan choices is unchanged,” she mentioned.

The Division of Insurance usually releases premium rate requests each summer, followed by a review of healthcare costs and usage to set rates that ensure stability without excessive charges. Final rates are typically announced in October.

Recent analyses of rate filings in 16 other states and the District of Columbia revealed that insurers are seeking average increases of 14%. If approved, these hikes would mark the second-highest since 2018. Insurers attribute the necessity for such substantial increases to rising care costs and the growing demand for healthcare services.