Colorado Health Insurance Premiums Facing Sharp Increases After Tax Credit Expiry

Health insurance premiums for Colorado residents without employer-sponsored coverage are projected to rise significantly under recent federal tax and spending legislation. The Colorado Division of Insurance reports that insurers have requested an average premium increase of 28%, with those losing eligibility for expiring premium tax credits potentially facing hikes up to 196%.

The end of these tax credits, initially expanded during the COVID-19 pandemic to increase affordability, could lead to substantial cost burdens for low-income consumers. Higher premiums are also expected to coincide with increased deductibles and out-of-pocket maximums, contributing to greater overall healthcare expenses.

These financial pressures may result in delayed treatment, reduced medication adherence, and increased reliance on costly emergency care, ultimately elevating the risk of medical debt and financial instability among affected Coloradans.

Public feedback on the proposed rate adjustments is being solicited by the Colorado Division of Insurance, with approximately 321,000 residents impacted. Regulatory oversight will focus on preventing excessive rate inflations beyond what is necessary to maintain market stability. This situation highlights the ongoing challenges in balancing health insurance affordability with federal funding decisions and market dynamics in individual health insurance markets.