Colorado Health Insurance Premiums Projected to Rise Sharply in 2025
Health insurance premiums in Colorado are set to increase significantly, affecting approximately 321,000 residents in the individual market, including the self-employed and part-time workers. The Colorado Division of Insurance (DOI) reports an average statewide premium increase request of 28%, with specific increases averaging 24% in Colorado Springs and 30% in Pueblo. These proposed hikes represent the largest in recent years and follow a trend of steady premium growth over the past few years, including increases of 1.1% in 2022, 10.4% in 2023, 9.7% in 2024, and 5.6% in 2025.
The DOI highlights that these substantial premium increases are not isolated to Colorado but are reflective of a broader national trend affecting individual market insurance premiums. Factors influencing these changes include regulatory adjustments and federal policy shifts. Notably, the expiration of enhanced premium tax credits (PTCs), which have supported middle-income families in affording coverage, contributes to the upward pressure on insurance costs. The loss of these subsidies is scheduled for December, adding financial strain on consumers.
Political discourse surrounds the issue, with opposing perspectives from state legislators regarding the causes and solutions for rising premiums. Some attribute the increases to federal tax legislation changes and the expiration of healthcare subsidies, while others emphasize the need to examine regulatory burdens that may impact insurer costs. The ongoing debate underscores the complex interaction between federal policies, state insurance markets, and legislative actions.
Stakeholders in the Colorado insurance market, including policymakers and insurers, are monitoring these developments closely as they could influence regulatory responses and market dynamics for individual health insurance plans going forward. Understanding these premium trends is critical for insurers, brokers, and policymakers as they navigate pricing, compliance, and consumer affordability challenges in the evolving health insurance landscape.
Overall, the anticipated premium increases in Colorado's individual market reflect broader national pressures including policy changes and subsidy expirations, which exacerbate affordability issues for individuals outside employer-sponsored coverage. This situation highlights ongoing challenges in maintaining stable and affordable individual health insurance options.