Colorado small group health insurance rates set to rise by double digits in 2026

Although the increase isn't as significant as the one facing Coloradans who buy their own health insurance, individuals who work for companies with 50 or fewer employees will still see a double-digit rise in 2026.

The Colorado Division of Insurance on Thursday announced preliminary health insurance increases for the small group market changes expected in 2026.

Up until 2025, a small group employer was defined as 100 or fewer workers. In 2026, the result of 2024 legislation, that definition will change to 50 or fewer workers.

Health insurance rate increases will average 13.6% statewide, with Western Slope Coloradans expected to see the highest increases at 17.2%.

The small group market in Colorado covers about 172,000 Coloradans, according to the division.

The division did not give a reason for the increases in the small group market.

In a statement, Commissioner Michael Conway said the "requested premium increases for plan year 2026 will put employers in the position of making difficult decisions on how to pay for health insurance for their employees."

It will be important for employers to shop for the best option available for their employees, he added, as there may very well be more affordable options in the market.

The division also announced that Anthem HMO is leaving Colorado, effective Jan. 1, 2026. It's the fifth health insurance provider to leave the state since 2022, along with Bright Health, Humana, Oscar Health and Friday Health Plans.

The announcement said the HMO's enrollment had steadily declined, and its decision impacted less than 0.9% of Coloradans enrolled in the small group market. The change affects only the Anthem HMO and no other Anthem products in Colorado, according to the division.

Anthem will continue to offer small group health benefit options in Colorado through Rocky Mountain Hospital & Medical Services, which is the name under which Anthem operates in Colorado.

Earlier this month, the division announced that health insurance rates for Coloradans who buy their insurance in the individual market would increase by an average statewide of 28%. For Western Slope residents, that increase is projected at 38%.

The division attributed the above-average increases to President Donald Trump's federal tax bill.

"These circumstances are not unique to Colorado, and other states will likely have similar increases," the division said in a statement on July 16.

According to the 2023 Colorado Health Access Survey, 5% of Coloradans, or about 200,000, purchased plans on the individual market. About 50% are enrolled in an employer-sponsored plan in either the large or small group market or are self-insured, with another 30% enrolled in Medicaid and 10% in Medicare. Another 4.6%, according to the Colorado Health Access Survey, are uninsured.