Health Insurance Premiums to Surge in Northern Colorado
TL/DR –
With the impending expiration of premium subsidies, health insurance premiums in Colorado are set to increase by an average of 101% according to the Colorado Division of Insurance. It is estimated that this will result in about 75,000 Coloradans losing their insurance coverage. This increase applies to private insurance purchased through the state’s marketplace, Connect for Health Colorado, with premium increases predicted to exceed 200% in some rural counties.
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Insurance Premiums to Rise by 101% in Colorado, Predicts State Division of Insurance
Colorado residents who rely on private insurance are bracing for a sharp rise in premiums, as data from the Colorado Division of Insurance predicts a staggering 101% increase once open enrollment starts this weekend. This dramatic increase in costs is due to the imminent expiration of premium subsidies.
Higher Premiums May Leave Thousands Uninsured
The division’s analysis suggests that these escalated premium rates could result in approximately 75,000 Coloradans losing their insurance coverage. “The biggest worry is people losing access to regular healthcare, as we know that preventative care helps avoid the need for more specialized or costly treatment,” said MJ Jorgensen, the deputy executive officer at the Northern Colorado Health Alliance.
The anticipated change will not impact employer-sponsored insurance plans. Instead, it will affect those who buy private insurance from Connect for Health Colorado, the state’s marketplace that was established in 2013 following the implementation of the Affordable Care Act (ACA), also known as Obamacare.
Rural Counties to Experience Greater Hikes
Worryingly, the predicted premium hikes could exceed 200% in some of Colorado’s rural regions. Legislation passed in a special summer session is keeping the costs from soaring even higher.
Coverage Guides to Assist in Insurance Selection
To assist individuals in navigating the complex landscape of insurance, the Northern Colorado Health Alliance has a team of certified coverage guides. These professionals help people understand their options on the Connect for Health Colorado website, ensuring they select a plan that best meets their needs.
Expiration of ACA Tax Credits
Since 2021, residents who met the income qualifications were eligible for ACA tax credits that significantly reduced their premiums for marketplace coverage. These subsidies were later extended by the Inflation Reduction Act, but they are due to expire at the end of the year.
Health Centers Face Financial Instability
Mitzi Moran, the CEO of Sunrise Community Health, expressed concern over the financial instability faced by community health centers like theirs. Sunrise Community Health, which operates 12 clinics across Weld and Larimer Counties, may face an uncertain future due to frozen federal grants, a roll-back of Medicaid, and the end of ACA premium tax credits.
Moran recalled how the Affordable Care Act had once empowered uninsured patients to purchase insurance plans. “This allowed us to bill for services, which in turn led to revenue that helped us expand in the community, including the establishment of the Adelante Clinic in Loveland, adding 10,000 patients to Sunrise,” she added.
Now, the mounting financial instability is already causing deterrents for potential hires. Moran voiced her concern, “Some potential candidates for our clinician openings have expressed reservations about joining due to the perceived instability. If this financial uncertainty persists, Sunrise may have to consider reducing operations, which could involve facility cuts, service reductions, or staff layoffs.”
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