Health Insurance Premiums in Colorado Expected to Double

Starting next year, Coloradans purchasing health insurance on the state’s individual market will see their premiums double. Higher-income households could face increases exceeding $10,000, as announced by state officials on Monday.

Consumers are experiencing a tough situation this year. The rise in monthly health insurance costs is influenced by an aging population and growing demand for costly medical treatments, including expensive medications. Moreover, with tax credits reverting to pre-pandemic levels, families will have to cover a larger portion of their monthly costs than they have had to since the pandemic began.

The average individual receiving assistance for insurance, according to Connecting for Health Colorado, will encounter a premium increase of 101% in 2026, factoring in both of these elements.

Subsidies have historically lowered the percentage of income needed for insurance premiums. For instance, someone earning $35,000 a year previously contributed about 3%, or $1,033 annually, towards premiums. However, this figure will rise to 7.5%, translating to around $2,615 next year, as reported by KFF.

Families earning more than four times the federal poverty line—approximately $128,000 for a family of four—won’t qualify for subsidies next year. In Denver, a family at that income level will see premiums for a silver plan jump by $14,000, with even higher costs in rural regions. The phase-out of enhanced subsidies was also gradual in relation to rising incomes.

From the 335,000 individuals buying insurance through the state marketplace, around 75,000 choose to remain uninsured, leaving them vulnerable to high medical bills in the event of unexpected health issues.

Jessica Nelson, a Denver resident, mentioned that for her family, going without insurance isn’t an option. She feels she must either select a less comprehensive plan, work more to boost her income, or cut back on non-essential expenses. Both she and her husband are self-employed and have no plans to return to traditional jobs for benefits.

“I just keep thinking about the people who are going to lose their insurance,” she expressed.

Currently, a four-week government shutdown is ongoing due to the expiration of upcoming tax credits. Democrats want any resolution to include an extension of enhanced aid, while Republicans argue that discussions for an extension should follow an agreement on federal funding.

Should Congress choose to extend these subsidies, premiums might still increase by about 16%, but low-income individuals wouldn’t see a price rise, according to the state insurance department.

Lawmakers theoretically have the opportunity to act, but time is running out. The open enrollment period begins Saturday, with a deadline of December 15 for those wanting coverage by January.

Typically, this information would have been available weeks earlier, after assessing whether the submitted rates from insurance companies were reasonable over the summer.

Congress passed a bill in August aimed at reducing premiums, leading to new figures from insurance companies. The Department of Insurance sought clarification from Congress on how much premiums would lower with an extended subsidy. Although current figures are unclear, extending these subsidies could lessen the anticipated price hikes for consumers.

The Congressional Budget Office estimates that extending the subsidies could result in 3.8 million additional insured individuals, but would also raise the budget deficit by $350 billion over the next decade.

“These premium increases will force impossible decisions for families across our state,” remarked Health Commissioner Michael Conway in a release. “We’ve been raising concerns, but Congress’s inaction means Colorado families will face unacceptably high health insurance costs during these challenging economic times.”

National estimates from KFF predict further premium increases, with some seeing an average increase of 114% among subsidy recipients. Another estimate suggests an average increase of 93%.

Employment-based insurance costs also tend to rise annually. In 2025, workers paid around 6% more in premiums compared to the previous year, according to KFF. Data on 2026 premiums isn’t available yet.

Conway noted that Congress managed to mitigate the average impact of premium increases from about 174% to 101% by allocating $75 million in direct subsidies to consumers and contributing up to $50 million into state reinsurance programs.

Reinsurance acts as a safety net for insurance companies, covering some costs for their most expensive patients. This helps these companies lower premiums, which can save federal costs that would typically go towards tax credits.

As federal support diminishes, savings from tax credits also decrease. Congressional funding has replaced some of the federal dollars Colorado would otherwise lose.

Conway warned during a press conference last week that the rise in individual market premiums could have long-term consequences for health care providers and those with employer-sponsored insurance. He pointed out that when fewer individuals are insured, hospitals provide more uncompensated care, which ultimately drives up costs for those with private insurance plans.

“Nowhere in our healthcare ecosystem is safe from the coming disaster,” he warned.