Health insurers in Colorado have petitioned for significant premium increases for the upcoming year, a move state officials attribute to the recently enacted One Big Beautiful Bill Act, which encompasses various tax and spending measures.
Overall, insurers are seeking to raise health insurance prices by an average of 28.4% for 2026, marking what could be the second-highest annual increase since the rollout of the Affordable Care Act.
These hikes will be particularly felt in areas such as the Western Slope and Grand Junction, where proposed increases exceed 38%.
Regions like Pueblo and the Eastern Plains could also face substantial increases, with projections indicating rises above 30%, as reported by the Colorado Division of Insurance.
The higher premiums affect individuals who purchase their health insurance independently, leaving more than 300,000 Coloradans to bear the brunt of these price hikes.
The proposed increases are not just numerical; they could translate into thousands of dollars more in annual costs just to maintain insurance coverage.
Out-of-pocket expenses, such as deductibles and copays, will further add to the financial strain.
“Tragically, Congress is kicking people off their health care and has created chaos that is going to cost Coloradans money,” Gov. Jared Polis remarked, referencing the drastic increases and their implications for families.
The implications of these premium increases are vast, particularly for those who do not receive coverage through their employer.
Despite some individuals potentially qualifying for federal subsidies, significant modifications to subsidy structures in 2026 may lead many to pay higher percentages of their premiums or lose subsidies altogether.
This could result in financial burdens amounting to tens of thousands of dollars per year for some families in Colorado.
Colorado Insurance Commissioner Michael Conway emphasized that the core premium increase of 28% does not take into account the additional challenges posed by potential subsidy losses.
The One Big Beautiful Bill Act introduces several technical adjustments regarding health insurance policies, which Conway suggested are contributing to the price hikes.
Among these changes are new restrictions on automatic renewals, tightened checks for subsidy eligibility, a shorter enrollment period, and limitations on subsidy access for lawfully present immigrants.
Perhaps most importantly, the bill does not extend enhanced subsidies put in place during the pandemic, which means several hundred thousand Coloradans will receive less financial assistance when seeking health coverage.
While the federal government may benefit from these changes financially, the reductions in funding further exacerbate the financial challenges for programs within Colorado that have been crucial in keeping insurance costs down.
One key program, known as reinsurance, has been instrumental in curtailing health insurance prices since its inception, with state estimates suggesting it has saved residents over $2 billion.
However, due to the latest federal changes, the benefit provided by this program is expected to diminish by approximately 40% next year, contributing to nearly 8 percentage points of the proposed increase in premiums.
These developments are anticipated to discourage enrollment, with state projections suggesting that upwards of 100,000 individuals may choose to drop coverage in response to the rising costs.
Moreover, the demographic of those likely to forgo insurance may predominantly consist of healthy individuals who believe they can manage without coverage.
The departure of these healthier individuals from the insurance risk pool can create further financial strain on insurers, who must then compensate for the increasing costs associated with a sicker pool of insured individuals.
Consequently, as insurers experience a higher concentration of health care costs from a less diverse risk pool, they tend to raise their prices to ensure that they can meet the demand for health services.
Colorado’s previous record for the highest annual hikes in insurance premiums occurred in 2018, which saw an increase of 34.3% amid efforts by the Republican-led Congress to repeal the Affordable Care Act, alongside changes implemented during President Donald Trump’s administration.
It is important to note that regulators will assess the requested price increases, with the Colorado Division of Insurance reviewing the filings before a final decision is made.
The review process includes opportunities for public comment, and a virtual hearing is set for August 1 to gather feedback from those impacted.
Mannat Singh, executive director of the Colorado Consumer Health Initiative, urges regulators to carefully scrutinize the proposed increases to ensure insurers are not exploiting the situation to inflate their profits unfairly.
“It is crucial to hold them accountable,” she stated, emphasizing the need for vigilance in the face of looming price hikes.
image source from：coloradosun
