Four years after implementation, the Colorado Public Option has not delivered on its central promise of lowering premiums in the individual market.

Both federal and health insurance carrier rate filing data show the program has consistently failed to meet its statutory premium reduction targets and has produced only minimal savings where they exist. For most Coloradans, non-Colorado Public Option plans continue to offer lower premiums and cover most enrollees. Meanwhile, Colorado’s reinsurance program—not the public option—has been the primary driver of premium reductions.

Colorado Option Plans Fail to Meet Premium Reduction Targets

Carriers’ 2026 rate filings in the individual market demonstrate that the Colorado Public Option has continued to fall short of its premium reduction targets.

• Six carriers offer individual market coverage in Colorado, and all participate in the Colorado Option, but no Colorado Option plan met the state’s required 2026 premium reduction targets for bronze, silver, or gold plans anywhere in the state.
• The Denver market, which makes up about 40 percent of Colorado’s individual enrollment, shows how large the gap is, with all six carriers offering Colorado Option plans but average 2026 Colorado Option bronze premiums nearly 39 percent above the Colorado Option premium reduction target.
• A similar pattern is evident for silver plans in the Denver market. The average monthly 2026 Colorado Option silver premium is approximately 36 percent higher than the intended target.

Non–Colorado Option Plans Offer Lower Premiums and Cover Most Enrollees

In 2026, Colorado Option plans are more expensive than non-Colorado Option plans for 85 percent of Coloradans that seek coverage in the individual market. The majority of Coloradans prefer to enroll in non-Colorado Option plans.

Reinsurance—Not the Colorado Public Option—Is Driving Savings

Federal data indicates that reinsurance – not the Colorado Public Option – has been the primary driver of premium savings in Colorado’s individual market.

• In 18 of 25 Colorado service areas, which encompass the vast majority of the state’s market, federal data show less than two percent in Colorado Public Option premium savings. In comparison, reinsurance in those same service areas lowers premiums by 15 to 32 percent with a statewide average of over 20 percent.
  
• In Denver, the Colorado Public Option reduced premiums by approximately 0.3 percent, while the state’s reinsurance program reduced premiums by more than 16 percent.

Taken together, these results raise serious concerns about whether the Colorado Public Option approach is capable of delivering meaningful affordability improvements for consumers in the individual market. Despite full carrier participation, the Colorado Public Option has not produced the premium reductions the program was designed to achieve.