Coloradans could see double-digit increases in health insurance premiums for 2024

Health insurance for Coloradans in 2024 could go up by more than 11%, depending on the plan purchased.

That's based on premium increases requested by health insurance companies, although not what has been approved, according to a news release from the state Division of Insurance.

The increase for Colorado Option plans — state-designed plans that health insurers are mandated to carry — is expected to be just under 8%. But those plans apply only to the individual and small group market, which represents about 12 to 14% of the total market, according to the Division of Insurance.

Under the Colorado Option law, health insurance premiums in 2024 must be 10% lower than 2021 premiums. For 2025 plans, they must hit a 15% reduction target. Vincent Plymell, deputy commissioner at the Division of Insurance, said whether those targets are met will be determined after the division analyzes insurance company filings in the coming months.

Health insurance plans and premiums should be finalized by October in time for the November open enrollment period.

Under the proposal, the division said Colorado Option plan costs will increase by 7.7%, with non-option plans set to increase by 11.1%. But those are only requested rates, and the division said that some of the average premium increases could go down after the division does its analysis.

Six companies — Anthem/HMO Colorado, Cigna, Denver Health, Kaiser Permanente, Rocky Mountain HMO, and a new company, Select Health — will offer health insurance plans statewide in Colorado for 2024.

Bright Health, Humana, Oscar Health, and Friday Health Plans have pulled out of the Colorado market in 2023. The division announced Monday it was seeking to liquidate the latter of that group, and that Friday Health Plans' 30,000 members would have to find new insurance when the plans cease to operate on Aug. 31.

Peak Health Alliance will partner with Denver Health in 2024 to offer individual plans in eight mountain counties: Archuleta, Dolores, Grand, La Plata, Lake, Montezuma, San Juan, and Summit. Peak previously partnered with Bright Health, but had to shut down for 2023 when that company pulled out of Colorado.

The division said the six insurance companies have proposed to offer 371 plans across Colorado, consisting of 30 Colorado Option plans and 341 non-Colorado Option plans.

About 35,000 Coloradans enrolled in Colorado Option plans for 2023, its first year. The Polis administration and Division of Insurance cheered the numbers, which they said exceeded expectations. That figure included 10,000 who enrolled through OmniSalud, which allows undocumented immigrants to obtain health insurance. The only plans available to OmniSalud members are from the Colorado Option.

In announcing the higher premiums, the Polis administration said the state's reinsurance program, which helps health insurers pay for their highest-cost claims, will continue to save Coloradans money. On average, health insurance premiums would be 21% higher without the reinsurance 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. This is an important step in our work to make sure every person can access and afford high-quality health care in Colorado," said Governor Jared Polis.

Adam Fox, deputy director for the Colorado Consumer Health Initiative, said Thursday they were disappointed "with the significant overall increase in proposed insurance rates." That said, Fox noted a recent series of hearings and settlements with health insurers, tied to the Colorado option, which he said has produced savings for Colorado Option rates.

"Based on the proposed rates and what we saw during the public hearing process, the Colorado Option is increasing competition and accountability in the marketplace and ensuring that consumer savings can be found, even when insurers and hospitals attempt to avoid scrutiny. We hope and expect that after public input on these proposals, the DOI and carriers will make significant adjustments to reach the targets. We will likely have to wait until the final rates are released in the fall to fully capture the savings that will be passed on to consumers."

Plymell said that consumers should look beyond just the premium when shopping for health insurance. He said there are other considerations, such as health care needs and that of your family. The lowest premium isn't always the cheapest, when you take into consideration out of pocket costs, for health care. Spend time shopping, even if you're happy with your current coverage, he added.