CCHI finds sufficient choice, no “rate shock” in insurer proposals
DENVER — A preliminary analysis of proposed individual health insurance plans and rates shows that there will be a robust market and people will be better positioned to afford insurance through Connect to Health Colorado, the state’s new health care marketplace. Insurers filed 150 plans and rates in the individual market and 93 in the Small Business Health Options Program (SHOP) with Colorado’s Division of Insurance on May 15, 2013.
“Colorado consumers will be pleased they will have a enough health insurance plans from among which to choose, without being overwhelmed by too many choices – it looks like Goldilocks, just right,” said Dede de Percin, executive director of the Colorado Consumer Health Initiative. “Despite doomsday predictions, the state is not seeing ‘rate shock’, so many of the choices will be more affordable, especially with the subsidies.”
CCHI conducted a preliminary analysis of Connect for Health Colorado one “silver level” individual market plan from each of the submitting 10 insurers: All Savers Insurance Company, Cigna, Colorado Choice, Colorado Health Insurance Cooperative, Denver Health, HMO Colorado, Humana, Kaiser, New Health Ventures and Rocky Mountain HMO. Rates vary by insurer and region:
Denver Individual Plans
* 27 year old: $207 to $373 per month
* 40-year old: $253 to $454 per month
Denver Family Plan (2 parents age 40, children under 18)
* $756 to $1,360 per month
Durango Individual Plans
* 27-year old: $207 to $504 per month
* 40-year old: $253 to $615 per month
Durango Family Plan (2 parents age 40, children under 18)
* $756 to $1,840 per month
Fort Collins Individual Plans
* 27-year old: $197 to $406 per month
* 40-year old: $240 to $495 per month
Fort Collins Family Plan (2 parents age 40, children under 18)
* $718 to $1,481 per month
Most consumers will not pay these prices since low and middle-income Connect for Health Colorado marketplace consumers will be eligible for advanced premium tax credits based on income. For example, a 40-year old earning $29,000 a year, paying a premium of $350 per month would be eligible for a subsidy of up to $154 per month and would contribute $196 per month for his or her health plan.
“Families of four making up to $94,000 will eligible for premium subsidies, which will make coverage more affordable for Colorado families,” said de Percin. “Connect for Health Colorado is going to be a great source for Coloradans to get the affordable health insurance they need.”
Six insurers submitted documentation for the SHOP: Colorado Choice, Colorado Health Insurance Cooperative, HMO Colorado (Anthem), Kaiser, Rocky Mountain HMO and See Change. Again, CCHI found that rates for individuals in the SHOP will vary by insurer and region:
Denver Small Group Plans
* 27-year-old: $252 to $341 per month
* 40-year old: $307 to $415
Durango Small Group Plans
* 27-year-old: $252 to $478 per month
* 40-year-old: $307 to $583 per month
Fort Collins Small Group Plans
* 27-year-old: $239 to $399 per month
* 40-year-old: $292 to $487 per month
All the rates have to be approved by the Colorado Division of Insurance, which has 60 days to review the filings. Rates can be disapproved for being inadequate, excessive, or unfairly discriminatory.