MEDIA RELEASE
Wed. July 17, 2024
Contact: Adam Fox, 303-563-9108, afox@cohealthinitiative.org
Katie Reinisch, 303-653-1009, katie@progressive-promotions.com
Consumer Advocates Express Some Optimism and Caution with Proposed 4-6% Health Insurance Rates Increases
DENVER – Today, Colorado’s health insurance companies proposed average premium increases of 4% increases for Colorado Option plans and 6% for non-Colorado Option plans as released by the Division of Insurance.
The Colorado Consumer Health Initiative expressed cautious optimism that Colorado’s efforts to control insurance rates are working in comparison to many other states where average proposed increases are near 10%. Premium increases are still concerning however, as Colorado families are still impacted when insurance carriers raise rates particularly as Coloradans struggle with other costs of living. The proposed increases for small businesses averaging 8% are more concerning, along with some of the individual market insurers that have filed increases at or slightly above 8%. Anthem filed the lowest proposed increase at 1.11% in the individual market, but the highest increase in small employer plans at over 14%. Thankfully, 96% of current individual market enrollees will have access to at least 2 insurance companies.
The preliminary rate filings show Colorado Option plans’ premium increases are lower, at an average increase of 4%. Colorado Option plans are more competitive and cheaper in the market while providing higher value benefits. Due to other state policies and ongoing review and accountability actions by the Division of Insurance (DOI) required by the 2021 Colorado Option law, insurers are more effectively controlling premiums and hospital costs.
The proposed rates will require review and adjustments by the DOI and the carriers, and non-Colorado Option plans will also be scrutinized to ensure consumers are not being taken advantage of with unfair assumptions and rates. Released information shows that the lowest cost Colorado Option plans are 10% cheaper than non-option plans in many places throughout the state.
“We’re cautiously optimistic with the overall 4-6% increase in proposed insurance rates,” said Adam Fox, deputy director of the Colorado Consumer Health Initiative. “However, along with high prescription drug costs, Colorado families are still taking the hit when insurance carriers and others in the healthcare industry could better control their costs. Several insurers have proposed average increases at or above 8% in the individual market, and those require much closer scrutiny. We will be reviewing the proposed increases closely and the DOI will be hearing from us and the general public to hopefully put further pressure on these proposed increases.”
“The Colorado Option is increasing competition and accountability in the marketplace and ensuring that consumer savings can be found. We want to ensure that the insurance carriers are doing everything they can to reach the premium reduction targets on these plans. As always, it is important for Coloradans to review their options to find the most affordable plan option for their needs. Increases in insurance rates are always painful, but the roughly 77% of Coloradans who receive tax credits through Connect for Health Colorado for individual insurance plans will see those tax credits adjusted based on the rates in their area.”
In its second year, over 93,000 Coloradans – 34% of Connect for Health Colorado enrollments – selected Colorado Option plans during open enrollment. This was a significant increase from the 13% in the first year these plans were available. These plans are popular and are an effective tool for increasing competition in the marketplace. Colorado Option plans also provide better value for most consumers, with more benefits covered without cost-sharing, like primary, behavioral, and perinatal care and a plan designed to address racial and health disparities.
The standardized Colorado Option plans have increased competition in the market, allowing consumers to compare apples-to-apples plans across insurers with standardized benefits. In almost all counties, the Colorado Option plans are cheaper than the average premiums for non-Colorado Option plans. As insurers have to provide premium reductions on these plans.
Colorado’s reinsurance program continues to stabilize and keep insurance rates lower. The DOI estimates that premiums would be 23% higher on average without reinsurance.
Colorado Consumer Health Initiative is a nonpartisan, nonprofit, membership-based group advocating for equitable access to high-quality, affordable health care. CCHI serves Coloradans whose access to health care and financial security are compromised by structural barriers, affordability, poor benefits, or unfair business practices of the health care industry.