The Colorado Division of Insurance (DOI) recently publicized a new, misguided policy brief from researchers at Brown University regarding the impact of the Colorado Option on premiums. In yet another attempt to spin the failed Colorado Option as a success to the people of Colorado, the DOI again neglects to tell the full truth: this state government-controlled health care system has failed to live up to its promises, particularly when it comes to improving affordability for Coloradans.

A 2024 study by FTI Consulting, an independent global business advisory firm, found that “Non-CO Option plans were the lowest-cost option for enrollees seeking out bronze and silver plans.” In addition, approximately 98 percent of plan-county combinations failed to meet the state’s premium reduction target. The evidence is clear: throughout its history, the Colorado Option has struggled to fulfill its promise of greater affordability, despite the DOI’s ongoing efforts to paint the policy as a success.

Not only has the Colorado Option predictably not delivered lower premiums across the state, but it has also harmed competition in the state’s insurance marketplace and decreased consumer choice. Researchers at FTI Consulting also found that the vast “majority of counties (87.5 percent) experienced as high as a 75.5 percent reduction in the number of available plans” in 2024. In addition, “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.” Coloradans deserve to have choices for their health care; any policies that limit their choices or effectively force them onto government plans they don’t want are in serious need of reconsideration.

The Colorado Option is not working. While policymakers have tried for years to deliver on their promises to Colorado voters, it is clear that the Colorado Option has, much like every public option in the country, failed to deliver. Rather than continuing to invest time and resources into promoting such a policy, we encourage the DOI to build on what is already working in our health care system. We look forward to working alongside them to improve health care affordability and expand access to care for the people of Colorado.

Read more about the Colorado Option’s impact on premiums here.