Two insurers in Colorado withdraw some plans from the individual health care market

Many Coloradans will need to seek out new health insurance options after two insurers announced they are pulling plans from the individual markets. About 96,000 people will be impacted by this change from Rocky Mountain HMO and Anthem, as stated by the state’s insurance department.

This decision arrives as the Republican majority in Congress has so far declined to extend tax credits that help Coloradans afford insurance plans in the individual market. Interestingly, this news came just before a special legislative meeting where state lawmakers are addressing a sizable budget shortfall of $1 billion.

Michael Conway, Colorado’s insurance commissioner, urged lawmakers to reinstate these credits. He mentioned, “We’re looking forward to seeing you in the process of doing things. Aside from the necessary actions from Congress, elected leaders can play a crucial role in stabilizing the individual market during these critical meetings.”

Conway also indicated that his agency is striving to maintain market stability. However, he expressed concerns that without intervention, hard-working individuals could face dire consequences, with more than 100,000 potentially losing financial support.

Last month, the state insurance division previewed the upcoming year’s insurance rates, predicting significant increases due to Congressional cuts in federal healthcare funding and the failure to renew expanded tax credits. These credits have made it easier for many Coloradans to afford insurance through the state’s exchange, Health Colorado.

It’s already anticipated that, without these tax subsidies, over 100,000 residents will lose their insurance. According to the release, “For those Coloradans who remain registered, the average rate increase will likely exceed 100%, with some nearing 200%.”

Anthem described their decision as a procedural move, expressing hope that the notice could be retracted later. Emily Snookes, a spokesperson for Anthem, stated, “We are committed to ensuring access to affordable, high-quality health insurance for Colorado residents.” She added that this process stemmed from regulatory requirements ahead of the state’s future health plan decisions.

Rocky Mountain HMO had not responded by the time this information was published. Consumer health organizations condemned the actions of both Congress and health plans, pressing for immediate action. Adam Fox, assistant director of the Colorado Consumer Health Initiative, criticized the situation, saying it severely undermines affordable care laws.

He pointed out, “Their decision to slash healthcare and eliminate tax credits that significantly improve affordability is wreaking havoc in our markets.” He also mentioned that these companies are trying to navigate the fallout from Congress’s actions, leaving Coloradans in a tough spot.

Despite these changes, all counties will still have health plans available for individuals. Open enrollment for new plans will kick off on November 1st.

Rocky Mountain HMO indicated it plans to withdraw from several counties, still offering options in the individual market but removing 20 plans in seven counties, affecting around 26,000 people. Anthem HMO Colorado submitted similar plans to withdraw from certain areas, impacting about 70,000 members altogether, which is about two-thirds of those currently enrolled.

Affected Counties:

This story is still developing.