Coloradans’ health insurance in 2024 could increase by more than 11%, depending on the plan purchased.
That’s based on premium increases requested by health insurance companies, but not what was approved, according to a press release from the state’s Division of Insurance.
The increase in Colorado Option plans — state-designed plans that health insurers are required to offer — is expected to be just under 8%. But these plans only apply to the individual and small group market.
Under Colorado’s Options Law, health insurance premiums in 2024 must be 10% lower than premiums in 2021. For 2025 plans, they must meet a 15% reduction target. Vincent Plymell, deputy commissioner in the Insurance Division, said those targets will be determined after the division analyzes insurance company filings in the coming months.
Health insurance plans and premiums are expected to be finalized by October, in time for the November open enrollment period.
Under the proposal, the division said costs for the Colorado Option plan will increase by 7.7%, with non-option plans expected to increase by 11.1%. But those are just asking rates, and the division said some of the average premium increases may come down after the division does its analysis.
Six companies — Anthem/HMO Colorado, Cigna, Denver Health, Kaiser Permanente, Rocky Mountain HMO, and a new company, Select Health — will offer statewide health insurance plans for Colorado for 2024.
Bright Health, Humana, Oscar Health and Friday Health Plans exited the Colorado market in 2023. The division said Monday it was looking to liquidate the last of that group and that Friday Health Plans’ 30,000 members are expected to find new insurance when the plans stop operating Aug. 31.
Peak Health Alliance will partner with Denver Health in 2024 to offer individual plans in eight mountain counties: Archuleta, Dolores, Grand, La Plata, Lake, Montezuma, San Juan and Summit. Peak previously partnered with Bright Health, but had to close in 2023 when that company pulled out of Colorado.
The division said the six insurance companies have offered to offer 371 plans across Coloradocomposed of 30 Colorado option plans and 341 non-Colorado option plans.
About 35,000 Coloradans have signed up for Colorado Option plans for 2023, its first year. The Polis administration and the Division of Insurance applauded the numbers, which they said exceeded expectations. This figure included 10,000 people registered through OmniSalud, which allows undocumented immigrants to obtain health insurance. The only plans available to OmniSalud members are the Colorado option.
In announcing the higher premiums, the Polis administration said the state’s reinsurance program, which helps health insurers pay their costliest claims, will continue to save Coloradans money. On average, health insurance premiums would be 21% higher without the reinsurance program.
“Saving people money on health care has been our top priority since day one, and we’re starting to see these money-saving measures, from the Colorado Option to the Reinsurance Program, putting money back into the pockets of hard-working Coloradans.” This is an important step in our work to ensure that every person can access and afford high-quality health care in Colorado,” Governor Jared Polis said.
Adam Fox, deputy director of the Colorado Consumer Health Initiative, said Thursday they were disappointed “with the significant overall increase in insurance rates on offer.” That said, Fox noted a recent series of hearings and settlements with health insurers, related to the Colorado Option, which it says resulted in savings for Colorado Option rates.
“Based on the proposed rates and what we saw during the public hearing process, the Colorado Option increases competition and accountability in the marketplace and ensures consumers can save money even when insurers and hospitals try to avoid scrutiny. We hope and anticipate that after public comment on these proposals, the DOI and carriers will make significant adjustments to achieve the goals. We will likely have to wait until final rates are released in the fall to fully grasp the savings that will be passed on to consumers.
Plymell said consumers should look beyond the premium when buying health insurance. He said there were other considerations, such as health care needs and those of your family. The lowest premium is not always the cheapest, when considering out-of-pocket expenses, for health care. Spend time shopping, even if you’re happy with your current coverage, he added.
