Colorado Individual Health Insurance Premiums Poised for 28% Increase in 2026

Health insurance premiums for Colorado residents purchasing individual plans through the state marketplace are projected to increase substantially in 2026, with an average statewide rise of 28.4%. Insurers cite federal policy changes, including the expiration of enhanced premium tax credits and the passage of new legislation, as primary factors driving these increases. The Western Slope region faces even steeper increases, potentially exceeding 38%, disproportionately impacting rural counties and mountain areas.

The Colorado Division of Insurance attributes the federal changes to significant affordability challenges, potentially causing 100,000 to 110,000 residents to lose coverage.\n\nThe current rate proposals affect plans from six insurers operating in Colorado's marketplace: Cigna, Denver Health, Anthem, Kaiser, Rocky Mountain HMO, and SelectHealth. Among them, Rocky Mountain and Anthem requested the highest average increases, 36.4% and 33.6% respectively, while Kaiser proposed the lowest at 15.3%. These preliminary rates exclude Colorado Option plans, which are designed to provide lower-cost alternatives and have historically seen smaller rate hikes.\n\nPublic commentary on the proposed rates is open through August 8, with a stakeholder meeting scheduled for August 1. The Division emphasizes that federal policy uncertainty—especially regarding the non-extension of key federal tax credits—poses substantial market risks. The expiration of these credits, originally introduced through the American Rescue Plan and continued by the Inflation Reduction Act, represents the main impetus for premium growth. Failure to extend this assistance results in a "subsidy cliff," where individuals earning above 400% of the federal poverty level lose eligibility for subsidies. Colorado's reinsurance program, which helps mitigate insurer risk and thereby control premiums, is expected to be reduced by 40% in 2026 due to this subsidy loss, contributing about 8% to the total premium increase. This reduction in reinsurance funding further compounds the affordability challenges.

Demographic data indicates that about 5% of Coloradans purchase individual plans, with higher rates of individual plan enrollment in mountain corridor counties where uninsurance rates are also highest. These regions stand to be most affected by the sharp premium increases, which could jeopardize access to health services and strain rural health care resources.\n\nState officials and health policy experts warn that significant premium increases may force many residents to forgo insurance coverage despite the risks to their health, potentially increasing the uninsured population. The pending changes come after several years of steady but more moderate premium increases, marking 2026 as a year of particularly elevated cost pressures on Colorado’s individual market.