DENVER, October 25, 2023 — Colorado’s Health Care Future issued the following statement today regarding the Colorado Division of Insurance (DOI) announcement that health insurance premiums will increase by an average of 10% across individual market plans for the upcoming 2024 plan year.

“The DOI’s announcement that individual market health insurance premiums will rise by an average of 10% in 2024 is further confirmation that the Colorado Option law is failing to deliver the lower prices that were promised to Colorado consumers. In addition to higher premiums, including for the vast majority of Colorado Option plans themselves, Colorado’s health insurance market will see fewer plan options as health insurance companies have left the state, threatening access to affordable, high-quality coverage and care for Coloradans. 

“While DOI desperately tries to spin the Colorado Option as a success, it is becoming increasingly clear that the law is another broken promise to Colorado consumers. Higher prices and a less competitive marketplace are the exact opposite of what Colorado workers and families were promised, and no amount of new creative statistics from DOI can change that simple fact.

“Instead of misleading press releases, DOI should issue the complete analysis of final 2024 rates for all individual and small group plans, including Colorado Option plans, by county, metal tier, and carrier, highlighting year-over-year premium changes on a percentage basis, and the percentage of Colorado Option plans that have complied with the law’s premium reduction mandates. As Coloradans prepare to shop for their 2024 coverage, they deserve to evaluate this information for themselves.” 

Background:

• Health insurance premiums in the individual market are slated to increase by an average of 10% for the 2024 plan year. Premiums increased approximately 10% from the 2022 to 2023 plan years as well.
  
  
  
• Since the conclusion of the 2022 plan year, four health insurance carriers have exited either the individual market, the small group market, or both markets.
  
  
  
• DOI again this week intentionally conflated the Colorado Option with Colorado’s reinsurance program in a public-facing announcement. As reinsurance continues to demonstrate its value for Coloradans, the Colorado Option continues to fall short of its promises.
  
  
  
• Contrary to DOI’s assertion, health insurers and health care providers had already achieved the statutory minimum reimbursement rates independent of the public option, leaving the inaugural Colorado Option public hearings without a purpose. Further, Colorado’s health care community was forced to divert valuable time, resources, and funds away from patient care during the process. The state’s unpredictable and burdensome legal process required hundreds of formal legal filings and untold legal costs for all parties involved, including Colorado taxpayers. 
  
  
  
• An analysis by NovaRest, an independent actuarial consulting firm with extensive experience supporting state and federal insurance regulators, recently highlighted how the Colorado Option has fallen short on the promise to save Coloradans money on their health care. The actuarial analysis demonstrates how this state government-controlled health insurance system is increasing costs for Coloradans and reducing competition in the state’s health insurance market. 

Read more about Colorado’s Health Care Future here.