DENVER – October 9, 2020 – Governor Jared Polis announced the finalized insurance rates for the 2021 plan year, noting a 1.4% average decrease in premiums across Colorado’s individual market compared to 2020. For two years now, health insurance providers have reduced premiums for Coloradans by fighting for policies that help make insurance more affordable and accessible across the state.
In response to the finalized rates, Executive Director Amanda Massey stated, “Health insurance providers continue to take action to achieve market stability and greater affordability for consumers in the individual market. However, we are disappointed by the average 3.8% increase in premium costs for the small group market which are in part due to a new health insurance tax passed during the legislative session and will be borne by employers who provide health insurance to their employees. We will continue to fight for market-based policies that benefit all Coloradans and increase access to affordable health insurance. We are committed to making sure people are covered, particularly during a pandemic.”
Rates were positively impacted for individual purchasers by the ongoing reinsurance program which reduces premiums by taking the highest priced claims out of the risk pool. But changes enacted last session shift the financial burden of the reinsurance program to those purchasing coverage through employer-based plans due to a new premium assessment to fund the program and other initiatives.
Health plans submitted their proposed rates to the Commissioner of Insurance, Michael Conway, in June 2020 and the Governor’s announcement confirmed that the premiums submitted have now been accepted and approved by the Division of Insurance. Consumers shopping on t individual market will be able to enroll in the new plans starting on November 1, 2020. Open enrollment continues through January 15, 2021.