Colorado Marketplace Sees 5% Enrollment Drop Amid Premium Hikes and Tax Credit Expiry

Connect for Health Colorado, the state's individual health insurance marketplace, has reported a 5% decline in 2026 enrollment compared to the same period in 2024, with 210,139 enrollees as of November 1, 2025. Open enrollment runs from November 1, 2025, to January 15, 2026, with December 15 as the deadline for coverage starting January 1. A key factor contributing to the enrollment decrease is the expiration of the enhanced premium tax credits, federal subsidies implemented under the Affordable Care Act in 2021 and extended through 2022, which are set to lapse at the end of 2025. Without these credits, insurers plan significant premium increases, averaging 28% statewide and up to 38% in Colorado's Western Slope region, causing some residents to face tripled or quadrupled premiums. Colorado lawmakers passed a temporary measure during a special session in August to mitigate premium spikes for households earning between 100% and 400% of the federal poverty level. Despite rising premiums, about 65% of enrollees still qualify for financial aid, with many plans offering net premiums under $10 per month. Another enrollment factor is adjustments in federal eligibility policies, which reduced the number of individuals auto-renewed in the marketplace, notably excluding certain lawfully residing immigrants such as Deferred Action for Childhood Arrivals (DACA) recipients from subsidized coverage starting in 2026. For the 2026 plan year, six insurance companies will offer medical plans through Connect for Health Colorado, including Colorado Option plans that provide no-cost access to key health services such as annual check-ups, screenings, immunizations, maternity care, and behavioral health treatments. The agency has resources and a network of certified assistants and brokers to support consumers through enrollment, including multilingual assistance in over 22 languages. This approach aims to help Coloradans navigate the complexities posed by premium increases and eligibility changes. The enrollment trends and policy shifts in Colorado's health insurance marketplace reflect broader national challenges tied to federal subsidy expirations and regulatory adjustments affecting access and affordability. Insurers' rate hikes and tightened eligibility criteria exert pressure on marketplace stability and consumer participation. Monitoring legislative action on subsidy extensions and state-level interventions remains crucial for stakeholders managing risk and compliance in the ACA individual market environment.