Health Insurance Premium Increases Anticipated in Colorado

The Colorado Insurance Division has indicated that health insurance premiums for individual markets could rise by 28% in 2026. Particularly concerning is the western slope, where the average increase is projected to be about 38%. The rate filings are set to be made public on Friday.

The division attributed these above-average hikes to factors tied to a federal tax bill recently passed under President Trump. They noted, “These situations are not unique to Colorado; other states will likely see similar increases,” suggesting a widespread issue.

One of the main reasons for these hikes appears to be a loss of financial support for individuals paying for health insurance, which has been putting downward pressure on premiums. This aid expired at the end of last year, impacting around 321,000 residents immediately, according to the division.

In recent years, premium increases have varied: 5.6% in 2025, 9.7% in 2024, 10.4% in 2023, and just 1.1% in 2022.

Insurance chief Michael Conway expressed concern, stating, “We’ve been warning that federal disruptions in our health insurance market will cause real challenges for Coloradans.” He highlighted that rural and mountainous areas would bear the brunt of these increases, with some facing rates nearing 40%. “It’s frustrating because many simply can’t manage these rises—it’s like they’re being forced to gamble on their health,” he added.

Governor Jared Polis mentioned that significant premium hikes were also noted during Trump’s first term. He pointed out that, historically, Congress has contributed to pushing people away from health care, resulting in instability that costs Coloradans significantly.

Some of the projected rate increases are linked to losses in federal support for state reinsurance programs, which help to lower costs. Reinsurance is designed to cover the highest medical expenses of insurance companies through fees they pay, which is then matched with federal funding. The absence of this support is expected to reduce the program’s effectiveness by 40% in 2026.

Yet, even without factoring in the loss of federal support, premiums are anticipated to rise by 20% in 2026. Conway remarked, “Unfortunately, I doubt we can truly depend on the federal government to ensure health care access for people.”

Another contributing factor to rising costs is the loss of health insurance subsidies. Individuals who purchase insurance in these markets and earn up to 400% of the federal poverty level—around $62,000 per person or $128,600 for a family of four—will no longer receive federal grants because of the tax bill. This shift means they’ll need to pay full price for their coverage.

Connect for Health Colorado reported that, as of January, 80% of the 282,483 residents enrolled in health plans received some form of these grants. According to a recent survey, only 5% of Colorado residents purchase plans in individual markets, while about 50% are on employer-sponsored plans, 30% are on Medicaid, and 10% use Medicare. In counties along the I-70 Mountain Corridor, such as Eagle and Summit, about 9% of individuals buy their own insurance.

House Speaker Julie McCluskie, representing several Central Mountain counties, noted, “The disruptions caused by the GOP have led to increasing premiums throughout the state, hitting hardest in the mountainous regions where we’ve worked to keep costs down.” She emphasized the challenges families now face with rising premiums, which could lead to difficult decisions regarding their health care. She concluded by stating, “The GOP’s financial decisions have undermined coverage for the sake of wealthy tax evaders, leaving over 300,000 Coloradans facing rising health care costs.”