Health insurance sign-ups in Colorado are running even with last year, despite loss of big federal subsidies

Sign-ups for individual health insurance plans for next year are just slightly above what they were at this time last year, despite the loss of significant federal subsidies that could lead to some people paying twice as much or more to buy coverage.

On Tuesday, the state's insurance exchange, Connect for Health Colorado, reported that 256,422 people had enrolled in a 2026 plan through the exchange as of Dec. 15. That is 371 more people — or 0.14% — than the 256,051 who had signed up for a plan by Dec. 15 of last year.

The date is a significant milestone every year because it is the deadline to enroll in coverage that kicks in Jan. 1 of the following year. A large majority of people enrolling will select a plan by Dec. 15 — last year saw a total of 282,483 people enroll in coverage through the exchange.

"It's encouraging to see customers enrolling, particularly because we know this year hasn't been easy," Kevin Patterson, the CEO of Connect for Health Colorado, said in a statement.

Patterson is referring to the expiration of enhanced federal subsidies that help people afford coverage. Congress did not extend the subsidies this year. The original Affordable Care Act subsidies will remain for 2026, but the end of the enhanced subsidies sent premium prices skyrocketing for many.

State regulators had projected that more than 75,000 people could drop coverage as a result of the higher prices. While the numbers released Tuesday may provide some reassurance that won't happen, Colorado's insurance commissioner said it's too early to tell.

Congress is still debating whether to extend the subsidies when it reconvenes in the new year. The insurance commissioner, Michael Conway, said people who signed up for a 2026 plan may still bail on them if it becomes clear they'll actually have to pay the stated price.

"The enrollment numbers released today don't tell the whole story," Conway said in a statement. "While we are encouraged by the number of people that have signed up for coverage, we will be watching to see the percent of enrollees who pay their first month's premium, making their 2026 coverage effective."

A similar trend is playing out nationally, with enrollments slightly ahead of where they were last year. Colorado also took an extra step to limit coverage losses due to higher prices. During the special legislative session this year, lawmakers approved one-time funding to boost affordability programs, including a state subsidy that brought down premium prices for some.

Other factors may also be at work.

The original Affordable Care Act subsidies are available only to people earning below 400% of the federal poverty level — which in 2026 will be $62,600 for a single person or $128,600 for a family of four. The enhanced subsidies that are expiring helped people at higher incomes, especially in places like Colorado's resort communities, where incomes may be higher than average but health insurance is astronomically expensive.

Speaking to The Sun last month, Gunnison County health insurance broker Fawn Romero said some of her clients were trying to reduce their incomes to keep them low enough that they could remain eligible for at least some federal subsidies. One client planned to work fewer hours, for instance.

"I have some people who canceled," Romero said. "I have a lot of people who are teetering, whether to cancel or not. They say they just can't justify it."

Conway said some people choosing to remain insured may also be making other sacrifices to pay for it, like cutting back on groceries.

Patterson, the Connect for Health Colorado CEO, said about 65% of people shopping for insurance through the exchange this year will be eligible for subsidies. (Individuals can also purchase health insurance outside of the exchange, but the exchange is the only place where people can receive financial assistance.) Last year, 80% of people shopping through the exchange were eligible for subsidies.

About 38% of people shopping on the exchange this year will be able to find at least one plan with a monthly premium of $10 or less after subsidies. That doesn't take into account the annual deductibles and other out-of-pocket expenses for the plan, which can stretch above $10,000 in the case of lowest-tier bronze plans. He emphasized that Connect for Health has experts who can help consumers find the right plan at no additional cost.

"No one should have to choose between paying for health insurance and putting food on the table or paying their mortgage," Patterson said. "We expect we could continue to see impacts of the expiration of (the enhanced premiums) in the coming months."