If you’re purchasing health insurance independently — without employer assistance or government subsidies — there’s some tough news ahead. Next year’s coverage costs are set to rise by an average of 10% statewide, with even steeper increases in mountainous areas and the Western Slope.
The Colorado Division of Insurance revealed these increases, noting that part of the rise is due to Congress not extending certain subsidies last year. Additionally, costs for healthcare and prescription drugs are contributing factors.
To somewhat counterbalance the lost subsidies, Colorado has managed to gather funds for its own insurance subsidy, which officials claim has helped to prevent even greater price hikes. On a national level, the average increase is projected at around 15% for next year, slightly higher than Colorado’s numbers.
Last year, prices surged by an average of 23% across the state.
For those eligible for the state and federal subsidies, premiums are expected to go up by roughly $20 monthly. Eligibility for these subsidies requires a household income below 400% of the federal poverty level, which in 2027 will be about $63,840 for an individual and $132,000 for a family of four.
Households earning above those thresholds will have to cover the entire price increase unless they manage to find a more affordable plan.
“While Congress is pulling the rug out from under millions of Americans struggling to afford healthcare, Colorado is stepping up to save people money,” noted Gov. Jared Polis. “We’re keeping insurance rate increases well below the national average, saving Coloradans millions.”
Mesa, mountains hit hardest
In Mesa County, prices will rise the most, averaging 15.5% there and 11.8% in mountain communities. The Eastern Plains can expect the smallest hikes, with an average increase of 5.9%.
These adjustments affect only individuals shopping in the individual market — basically, those not covered by an employer and purchasing insurance on their own. This group comprises only about 7% of Coloradans, but their market prices often serve as indicators of broader insurance trends.
State regulators regulate prices in the individual market. This year, insurers initially requested an 11% average increase, which was reduced by regulators to just 10%.
Colorado’s Insurance Commissioner Michael Conway emphasized their efforts to manage health insurance costs to improve healthcare access for residents.
For small businesses, average price increases are anticipated at around 14% next year. Larger companies face different approval processes, so their price changes might vary significantly.
Adam Fox, deputy director of the Colorado Consumer Health Initiative, remarked that these increases stem partly from federal changes affecting the Affordable Care Act, which set the framework for many health plans and their subsidies. However, he also pointed a finger at the healthcare industry itself.
“We need to scrutinize the costs hospitals and pharmaceutical companies are presenting, and I don’t think insurers are doing enough to keep costs down,” Fox stated. “It’s crucial that we address the excessive profits in this sector.”
No disenrollments
Interestingly, the announcement of these price increases coincided with Vice President JD Vance stating that the federal government intends to remove as many as 760,000 Affordable Care Act enrollees over alleged fraud concerns.
However, Colorado may not be affected, since it has its own health insurance exchange, Connect for Health Colorado. This platform allows people to shop for coverage and access subsidies. Many states rely on the federal exchange instead.
A spokesperson for Connect for Health Colorado assured that they have independent processes for verifying eligibility and safeguarding customer data. They remain vigilant about maintaining marketplace integrity amidst shifting federal policies.
Conway, the state insurance commissioner, reiterated that these federal actions will not impact residents of Colorado.
