DENVER – A new study published by FTI Consulting reveals that the Colorado Option again failed to deliver on its supporters’ promises of greater affordability and significant coverage gains in 2024.

“Since being rammed into law in 2021, the Colorado Option has failed every single year to deliver the greater affordability and choice its supporters promised. Policymakers should acknowledge the fact that the Colorado Option does not work and turn the page on this unaffordable state government-controlled health insurance system that has left Coloradans with fewer coverage choices than before.”

Key findings from the report include:

• The Colorado Option failed to generate meaningful premium decreases for consumers. 
  • The study finds that “Non-CO Option plans were the lowest-cost option for enrollees seeking out bronze and silver plans.”
  • The vast majority of Colorado Option plans failed to meet the 2024 10 percent premium reduction target set by statute. Only 11 plan-county combinations (2.2 percent) achieved the 10 percent reduction target.
    
• The Colorado Option hurt competition in Colorado’s insurance marketplace and decreased consumer options for health care coverage. 
  • “The average number of plans decreased by 37.7 percent (53 to 33 plans) across the majority of CO counties in the second year of CO Option implementation, indicative of decreasing competition.”
  • The vast “majority of counties (87.5 percent) experienced as high as a 75.5 percent reduction in the number of available plans.”
  • “After the CO Option was implemented, consumers were left with fewer choices than before. In fact, more counties than ever before offered consumers plans from only one issuer as fewer were able to stay afloat in the market.”
    
• The Colorado Option had a minimal impact on health insurance coverage, with the numerous harmful consequences of the policy’s implementation outweighing any benefits. 
  • The study finds that the coverage rate was increasing more quickly before the Colorado Option was implemented.

Read the full report prepared by FTI Consulting HERE.