MEDIA RELEASE
Oct. 17, 2024
Contact: Adam Fox, 303-563-9108, afox@cohealthinitiative.org; Katie Reinisch, 303-653-1009, katie@progressive-promotions.com
Consumer Advocates Say State Policies Continue to Control Health Insurance Rate Increases
More Consumers Can Benefit from Colorado Option Plans but Industry Needs to Do More to Control Costs
DENVER – Today, the Colorado Division of Insurance released the final approved rates for the state’s healthcare insurance companies that show state rate review efforts — and the Colorado Option — are keeping rate increases lower. Still, the Colorado Consumer Health Initiative is frustrated that insurance carriers continue increasing prices on consumers rather than cutting or controlling their own costs.
The final rates show Colorado Option plans’ premium increases are lower, at an average increase of 4.6%. 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. Notably, Colorado Option plans are high-value, offering more health services without copays or cost-sharing. According to the DOI, a 40 year old individual who is currently in a non-option plan could save up to $225 a month in their premiums by switching to a Colorado Option plan. The DOI also emphasized that Coloradans could save a cumulative $235 million on premiums if virtually everyone in non-option plans switched to Colorado Option plans.
Outside of the Colorado Option plans, individuals purchasing their insurance will face an average 6.1% increase in premiums, compared to last year’s 9.7%, while small businesses will see an average 7.1% increase. However, Coloradans may be able to limit or avoid premium increases by choosing Colorado Option plans as these plans will be the lowest or second-lowest premium plans in 90% of Colorado counties for bronze and silver plans, and gold Colorado Option plans will be the lowest or second-lowest in all counties.
Many Coloradans who receive premium tax credits are largely protected from rate increases and may be able to avoid an increase in their monthly premium costs altogether, but may need to shop and change plans to do so. Even so, these continual rate hikes are challenging. Nearly 3 in 4 Coloradans faced some kind of health care affordability burden in the last year and coverage being too expensive is the reason many Coloradans cite for remaining uninsured. Colorado families are especially impacted when insurance carriers raise rates as consumers struggle with high housing and grocery costs.
“These lower rate increases show our state policies are working,” said Adam Fox, deputy director of the Colorado Consumer Health Initiative. “However, along with high prescription drug costs, rate increases still put a burden on Colorado families when insurance carriers and others in the healthcare industry could better control costs. Small businesses also continue to see higher rate increases, with 7.1% increases on average this year, making it more difficult for them to offer health coverage. That’s unsustainable for small business owners trying to provide health insurance to their employees.”
“The Colorado Option is increasing competition and accountability in the marketplace and ensuring that consumer savings can be found. We want to make sure that the insurance companies are doing everything they can to keep premiums down 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 – 80,000 of which accounted for 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 standardized to make the plan selection process easier, 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.
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.
Open enrollment for 2025 individual health insurance starts November 1 and lasts until January 15, 2025. Coloradans should go to ConnectForHealthCO.com to find out more. Colorado Option enrollees currently covered through the OmniSalud program can re-enroll Nov. 1st to 22nd, after which remaining subsidized spots will be opened for new enrollees.
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.
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