Colorado: *Final* avg. unsubsidized 2025 #ACA rate changes: +5.5%

via the Colorado Dept. of Regulatory Agencies:

Polis-Primavera Administration’s Landmark Reinsurance Effort Will Save Coloradans $493 Million on Healthcare Premiums in 2025, Putting Money Back in the Pockets of Hardworking Coloradans

Even more savings can be found by shopping and switching to a Colorado Option plan during open enrollment

DENVER - Today Governor Polis, Lt. Governor Primavera, and the Colorado Division of Insurance (DOI), part of the Department of Regulatory Agencies (DORA), announced that Reinsurance will save Coloradans almost $493 million on approved plans and premiums for 2025, building on the millions in savings available to Coloradans through Colorado Option plans. The figures below on the final, approved health insurance plans and premiums for 2025, highlight the impact of these efforts to save people money on health insurance. 

“Our landmark bipartisan reinsurance effort continues to lower healthcare premiums and provide Coloradans with historic savings on their healthcare plans. These continued savings put money back in the pockets of hardworking Coloradans to spend on other essentials or in our strong local economies across the state,” said Governor Polis.

“Access to high quality and affordable healthcare is critical for the health of all Coloradans. Increasing access to quality healthcare people can afford is something I have fought for over my decades of public service. These reinsurance savings will ensure getting the care people and their families need doesn't feel out of reach,” said Lt. Governor Primavera.

“These savings are incredible,” said Colorado Insurance Commissioner Michael Conway. “We have a Reinsurance Program that will save nearly $500 million for Coloradans next year. Add to that, Colorado Option plans that continue to be cheaper than non-Option plans, saving families millions a year. So my advice this year is the same as it is every year - get out there and shop to see what plans are available for you and your families.”

Reinsurance Savings: Nearly $493 Million

Colorado’s Reinsurance Program continues to deliver savings for people buying their insurance on the individual market (meaning insurance that is not provided through an employer). For 2025, the program is estimated to save Coloradans 23.8% on their premiums, equal to nearly $493 million ($492,847,3512). For a 40-year-old individual, that means an average savings over $1,500, and for a family of four, up to $5,800 in savings.

In many counties in the western half of Colorado, Reinsurance is saving people more than 40% on their premiums, and in Mesa County (Rating Area 5), premiums would be 44% higher without the Reinsurance Program. For a 40-year-old individual in Mesa County, that means an average savings of $2,700, and for a family of four, almost $10,000 in savings.

With the $493 million in savings for 2025, the total estimated savings for the program will be over $2 billion since its inception.

...Colorado Option: Colorado Consumers Could Save an estimated $235 Million 

For 2025, Colorado Option plans will again offer significant savings for enrollees.

In the individual market, the average increase for Colorado Option plans is again lower than non-Option plans: Colorado Option plans average premium change is 4.6%, while non-Option premiums will increase by an average of 6.1%. And Colorado Option plans will be the lowest or the second lowest plan in over 90% of Colorado counties next year for Bronze and Silver plans. For Gold plans, Colorado Option plans will be the lowest or second lowest plan in every county in the state in 2025.

Additionally, someone currently enrolled in an average cost, non-Option plan who switches to a Colorado Option plan in the same metal tier (bronze, silver, gold), could see significant savings. A 40-year-old switching to the lowest cost Colorado Option plan could save up to $225 a month, or nearly $2,700 for the year (depending on where they live in the state). A family of four making the same change could realize savings of $800 a month, or nearly $10,000 for the year. These Colorado Option savings add up to $235 million if everyone in the individual market made this switch.

In the small group market (for business with less than 100 employees), a 40-year-old making the change to the lowest cost Colorado Option plan would see savings of up to nearly $3,700 for the year, and a family of four would save over $14,000 on the year.

Rate Review Savings: $15 million

Every year, the DOI’s Rate Review Team works through all of the information the health insurance companies file to check that it meets the requirements of State and federal laws and regulations, but also to ensure that the premiums the companies request make sense. This year, the rate review process saved Coloradans over $15 million.

In the individual market, the average premium increase for 2025 will only be 5.6%, while in the small group market, the average premium increase will be 7.1%

Take the Time to Shop to Find More Savings

On top of these programs saving Coloradans money on health care, many people who get their insurance from the individual market and use the state’s exchange, Connect for Health Colorado, will be eligible for additional savings.

At least 80% of people currently enrolled in 2024 health insurance through Connect for Health Colorado will be eligible for financial assistance in 2025 that will help to make their insurance more affordable.

And that financial assistance can also be significant, as 77% of customers getting financial assistance will be able to find a plan with a premium less than $100 a month if they shop,  and 62% will be able to find a premium under $25.

With 219 plans available across Colorado for 2025 in the individual market, plus all of the available financial assistance, it is important that Colorado consumers take the time to shop and compare plans available as well as determine how much assistance would be available. Remember, the expanded eligibility for assistance available that was created by the Inflation Reduction Act is still in place, so if it’s been some time since you checked what assistance you might qualify for, it is time to check again at the Connect for Health Colorado’s Quick Cost and Plan Finder Tool(opens in new window).

Open Enrollment Starts Nov. 1 - Don’t Wait

Even though open enrollment doesn’t start until November 1, we encourage everyone to start looking at the health insurance plans available for 2025 and determining what financial assistance is available. At Connect for Health Colorado’s Quick Cost and Plan Finder Tool, the 2025 plans, premiums and financial assistance details will be available to view starting on October 22.

Open enrollment for 2025 individual health insurance lasts until January 15, 2025. People enrolling November 1 - December 15, will have their coverage start on January 1, 20254. For those that wait to enroll between December 16 and January 15, coverage will start on February 1, 2025.

More information can be found on the DOI’s website for approved plans.

The press release puts the unsubsidized weighted average rate increase for the individual market at 5.6%, but I actually have it slightly lower at +5.53%. I also have the weighted average rate hike for small group plans a bit higher than what the press release claims, at +7.5%. I'm not sure what accounts for the minor discrepancies.

In any event, here's what it looks like for Coloradoans in 2025. Again, keep in mind these rate hikes only apply to unsubsidized enrollees: