Coloradans will see their health insurance premiums increase by up to 5.5% next year, according to forecasts from the state’s insurance department. 

Gov. Jared Polis’ administration said that increase could have been more than four times higher if it hadn’t implemented a reinsurance program four years ago.

During the 2019 legislative session, lawmakers passed House Bill 1168, which allowed the state to file for a federal State Innovation Waiver to fund a reinsurance program aimed at stabilizing the market and lower premiums. The application was approved, and the program officially began in 2020. 

While Coloradans might be paying less than they would have without reinsurance, health insurance premiums in the state remain among the highest in the nation.

A study by consumer research company ValuePenguin found Colorado had the eleventh-highest premium increase in the nation from 2023 to 2024, with rates increasing by 9% for a 40-year-old with a mid-range silver plan.

According to the Department of Regulatory Affairs’ Department of Insurance, reinsurance will save the state $477 million on premiums and help avoid a nearly 23% premium increase. Some areas on the Western Slope could have faced increases of over 40%, officials said, adding that, since the program first began, reinsurance has saved Coloradans an estimated $2 billion in insurance premiums. 

“Reinsurance savings help make healthcare more affordable for all Coloradans, keeping more of their hard-earned money in their pockets to save or spend,” Polis said. “Colorado is leading the nation in saving people money on healthcare and the $477 million Coloradans will save on premiums in 2025 proves that what we are doing in Colorado is starting to work, and that we need to continue pushing hard to save people money on healthcare.”

Rates for plans through Colorado Option, the state-run insurance program that requires insurers to offer standardized plans and meet premium reduction targets, are expected to increase by 4%. According to the Division of Insurance, 34% of people who chose a plan on the state’s insurance marketplace, Connect for Health Colorado, picked Colorado Option. Officials touted it as a 188% increase from the previous year. 

“The Reinsurance and Colorado Option programs continue to deliver for Coloradans,” said Colorado Insurance Commissioner Michael Conway. “By the end of 2025, the Reinsurance Program will have reduced premiums by over $2 billion. I couldn’t be prouder that the cheapest Colorado Option is more than 10% cheaper than the cheapest non-Colorado Option plan in many places throughout the state. Now, the DOI team will dig deeper into these filings to find even more savings.” 

The final approved plans and premiums will be made available in October. The the state’s insurance division will be holding a virtual public meeting on July 25 at 9:30 a.m. to share preliminary information regarding health insurance for next year. Click here to register. 

Note: this story has been corrected to state that Colorado placed 11th in the ValuePenguin study, not sixth.