TL/DR –
The uninsured rate in Colorado has reached a record low of 4.6% in 2023, down from the 6.6% recorded in 2021, according to the Colorado Health Access Survey. This decrease was driven by a surge in the number of people covered by Medicaid, which now covers 30% of the state’s population. However, it is uncertain if the low uninsured rate will persist due to federal policy changes including ending safety nets during the pandemic and commencing eligibility redeterminations that could result in up to 325,000 people losing Medicaid coverage.
Colorado’s Uninsured Rate Hits Record Low, But Federal Policies May Change the Trend
Colorado’s uninsured rate plummeted to its lowest ever this year, reaching 4.6% in 2023, a considerable decrease from 6.6% in 2021. The data was provided by the biennial Colorado Health Access Survey, administered by the nonpartisan Colorado Health Institute (CHI). With a sample size of 10,000 households, this survey is a reliable tool for monitoring insurance coverage changes in Colorado.
Despite statewide improvements, Colorado’s uninsured rate is still higher in mountain resort communities. The health statistics region encompassing Summit, Grand, Eagle, Pitkin, and Garfield counties showed an estimated uninsured rate of 12%, a rise from 10% in 2021.
The statewide increase in coverage can be attributed to a rise in people covered by Medicaid, mainly catering to low-income families. The percentage of Coloradans covered by Medicaid escalated from 18.7% in 2019 to 30% in 2023, which translates to three out of every ten people in the state.
However, the rising Medicaid trend might not be sustainable. During the pandemic’s peak, the federal government directed states not to drop anyone from Medicaid coverage, resulting in an expanded Medicaid population nationwide. In Colorado alone, the number of people covered by Medicaid exceeded 1.7 million.
As the pandemic’s severity decreased, the federal government ended this safety net, advising states to begin eligibility redeterminations. Colorado officials estimated that up to 325,000 people might lose their Medicaid coverage due to this process, necessitating new coverage.
The 2023 survey data, collected from March to August, likely doesn’t account for these redeterminations, making it uncertain whether the record-low uninsured rate will persist. “It’s currently unclear the number of people who will maintain coverage and those who will become uninsured in the state,” said Jeff Bontrager, CHI’s director of research and evaluation.
The rise in Medicaid coverage corresponds to a drop in the percentage of people buying their own insurance. In 2023, an estimated 4.9% of Coloradans purchased coverage independently, a fall from 6.3% in 2021. The number of people with employer-sponsored coverage remained largely unchanged at nearly 50%, with about 10.5% of people covered by Medicare. Additional analyses of the survey findings will be released by the Colorado Health Institute in the coming months.
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