Colorado Health Insurance Enrollment Update: Impacts of Subsidy Expiration

As of December 15, Colorado's health insurance exchange, Connect for Health Colorado, reported that 256,422 individuals have signed up for health insurance plans for 2026. This marginal increase from the previous year's 256,051 enrollments comes after the expiration of enhanced federal subsidies that had supported the affordability of insurance coverage. The deadline is crucial as it indicates the last opportunity for plan activation on January 1, a date when historically significant enrollments occur, marking a total of 282,483 enrollees recorded last year.

The cessation of enhanced subsidies, previously benefiting those with incomes above 400% of the federal poverty level, means some consumers now face increased premiums, with potential coverage drop-offs. Colorado state regulators predicted that more than 75,000 residents might discontinue insurance due to heightened costs. Despite enrollment increases, state insurance officials, including Insurance Commissioner Michael Conway, express caution, noting that retention depends on premium payment compliance.

Impact of Subsidy Expiration

Nationally, enrollments slightly exceed last year's numbers. In reaction to subsidy expirations, Colorado lawmakers introduced one-time funding during a special session to enhance affordability programs, including state-level subsidies to mitigate coverage losses. Approximately 65% of Connect for Health Colorado enrollees qualify for these subsidies, down from 80% the previous year. About 38% of enrollees find at least one plan option with premiums of $10 or less per month after subsidies, despite persistent high deductibles and out-of-pocket costs in bronze-tier plans.

Industry stakeholders closely observe these regulatory compliance developments as policymakers deliberate on potentially restoring subsidies. The decisions hold implications for consumer affordability and insurance market dynamics in Colorado and beyond.