Colorado Health insurance premiums may increase for individual market plans
Last Updated on July 21, 2023 by Admin
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People on Colorado’s individual health insurance market could see an average premium increase of 10% next year, though less for people on Colorado Option plans, if requested rate changes are approved.
The state Division of Insurance and Gov. Jared Polis’ office announced the requested rate changes Thursday. The division will consider and decide on the requests in the fall, with a possibility they decline during regulators’ review process. Open enrollment begins in November.
About 200,000 Coloradans are covered on the individual market, and about 28,000 of marketplace enrollees are on Colorado Option plans (though another 12,000 people are on those plans through other means). Most Coloradans are covered through employer-offered plans, Medicaid and Medicare.
Health insurance companies are asking to increase premiums by an average of 11.1% for non-Colorado Option plans and 7.7% for Colorado Option plans. The exact increase varies from plan to plan. Officials did not have dollar figures available Thursday but expect more detailed information about premium rates come October.
The Colorado Option is a set of insurance plans designed by the state, though provided by private companies. It is not a true public option, because the state does not provide the coverage. It does mandate some primary care and mental health services be provided at no- and low cost, including copays. Kyla Hoskins, deputy commissioner for affordability programs, said it’s designed “to incentive what we believe are high-value services,” including diabetes care and pre- and post-natal care.
The Colorado Option also allows the state to negotiate on behalf of its clients with providers and hospitals, Hoskins said. She expects to see the fruit of those negotiations, through additional savings, this October.
Vincent Plymell, a spokesperson for the Division of Insurance, encouraged folks to look at the breadth of coverage offered by plans, and not just monthly premiums, to find one that best fits their needs.
“Sometimes you might go with the low-cost plan but you end up spending more on out-of-pocket costs,” he said.
Adam Fox, deputy director of the Colorado Consumer Health Initiative, said he was hopeful the proposed rate increase would decline by the time consumers begin shopping around this fall.
“We’re obviously concerned because, ultimately, consumers have to find a way to afford the health coverage and care that they need,” Fox said. “A 10% or 11% increase is not something that’s feasible for everyone, for sure, and it puts an additional strain on families’ budgets.”
Because of fluctuations in premiums, he encourages people to shop around as much as they can to find the best plan for them — but noted some don’t have that option or would have to give up certain coverage or doctor-patient relationships as a result.
The Polis administration, meanwhile, also boasted that the state reinsurance program, instituted in 2020, blunted the worst of proposed increases. The program subsidizes high-cost claims to stop them from raising the premiums for the rest of the pool. The state estimates premiums would be up to 21% higher this year without the program.
“Saving people money on health care has been our top priority since day one, and we are starting to see these money-saving measures, from the Colorado Option to the Reinsurance program, putting money back into the pockets of hardworking Coloradans,” Polis said in a statement. “This is an important step in our work to make sure every person can access and afford high-quality health care in Colorado.”
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