Significant Health Insurance Premium Increases Expected in Nevada and Colorado for 2026
State insurance departments in Nevada and Colorado have reported significant proposed health insurance premium increases for the individual and small group markets for plan year 2026. In Nevada, the Division of Insurance anticipates an average premium rate hike of 17.5% for individual plans, with 12 companies offering 210 plans, 157 of which will be on the exchange. The state's small group market is proposing an average increase of 12.1% across 276 off-exchange plans from 10 companies. A new initiative in Nevada is the introduction of Battle Born State Plans, enabled by a federal waiver, which include essential health benefits and have premium reduction targets, aiming to broaden affordable coverage access. Furthermore, a market-wide reinsurance program will launch in 2026 to leverage federal savings.
Colorado's Department of Insurance has announced even higher increases, with a statewide average premium rise of 28% for individual health coverage and a 38% hike in western Colorado. These increases are largely attributed to recent federal tax legislation changes, including the expiration of tax credits at the end of 2025, which will affect approximately 321,000 residents. The individual market has seen rising premiums in prior years, with increases ranging from 1.1% to 10.4% over the past several plan years. The small group market in Colorado faces a requested average premium jump of 13.6%. Notably, the definition of a "small employer" for insurance purposes shifted from 100 to 50 employees, concentrating market impacts.
Colorado insurers offering coverage include several key providers across 383 plans, with the premium hikes impacting about 172,000 small business employees. The state insurance commissioner emphasized the importance of employers shopping for competitive options amid rising costs and affirmed regulatory oversight to ensure rate justifications. Nationally, the small group market is contracting, described in a report by the National Federation of Independent Business as in a "death spiral," reflecting a steady loss of participants and insurers since 2014. Premiums have more than doubled for small employer groups in the last two decades, raising affordability concerns.
The Society of Collision Repair Specialists (SCRS) is actively addressing insurance cost challenges in its sector by developing tailored employee benefit programs that reduce expenses while enhancing accessibility to care. These programs, in partnership with the financial technology firm Decisely, offer competitive plans with features such as immediate coverage and no-cost service lists that traditionally require meeting deductibles. These efforts illustrate how industry groups are responding to market pressures by innovating insurance offerings for small businesses.
Open enrollment for 2026 plans in both states begins November 1, 2025, extending through mid-January 2026, with consumer input on rate proposals accepted prior to final approval. Regulatory agencies continue to balance market stability, affordability, and consumer choice amid ongoing premium increases and market transformations.