Polis-Primavera Administration’s Landmark Reinsurance Program to Save Coloradans $477 Million on Premiums in 2025

DENVER - Today, Governor Polis and the Department of Regulatory Agencies' (DORA) Division of Insurance (DOI), announced health insurance plans and premium savings for Coloradans in 2025 thanks to Colorado's landmark reinsurance program. Coloradans will save $477 million on premiums and avoid a nearly 23% premium increase, which would occur if reinsurance did not exist.

"Reinsurance savings help make healthcare more affordable for all Coloradans, keeping more of their hard-earned money in their pockets to save or spend. Colorado is leading the nation in saving people money on healthcare and the $477 million Coloradans will save on premiums in 2025 proves that what we are doing in Colorado is starting to work, and that we need to continue pushing hard to save people money on healthcare," said Governor Polis.

On average, individual market insurance premiums would be 23% higher in 2025 without Reinsurance and that is simply an average. In many counties in the western half of Colorado, premiums would be more than 40% higher without Reinsurance. In Mesa County, premiums would be 43% higher if Reinsurance wasn't in place. In total, the DOI estimates that Reinsurance will save $477 million for Coloradans in 2025, which by the end of 2025 will bring the total estimated savings to over $2 billion since it started in 2020.

"Ensuring all Coloradans have access to high-quality and affordable healthcare is foundational for me, both personally and professionally. When we invest in the health and well-being of Coloradoans, we create a stronger, more resilient home for all of us. I am proud of our work to help ensure costs do not hinder our neighbors from getting the coverage they need, and thanks to the Reinsurance Program, Coloradoans will continue to see significant health care premium savings," said Lt. Governor Primavera and Director of the Office of Saving People Money on Health Care.

Colorado Option
During last year's open enrollment, 34% of all health insurance plan selections made through Connect for Health Colorado were for Colorado Option plans, an 188% increase in enrollment from the previous year.

For the 2025 plan year, the insurance companies filed 48 Colorado Option individual plans, which are offered at the bronze, silver and gold metal tiers. These Colorado Option individual plans will be available from six insurance companies, and there will be at least one company with a gold, silver and bronze level Colorado Option plan in every county across the state.

Preliminary review of the filings indicates that the average change in premiums for Colorado Option plans in the individual market will only be about a 4% average increase in premiums compared to non-Colorado Option plans, which show a 6% average increase.

Average Requested Premium Changes - Colorado Option vs. Non-Option Plans

In addition, in nearly 90% of Colorado's rating areas, Colorado Option plans have the lowest or second-lowest premiums, depending on the metal tier (bronze, silver or gold). During open enrollment - Nov. 1 through Jan. 15 - it will be important for consumers to consider all plans, including Colorado Option plans, to balance affordability, health needs and convenience.

"The Reinsurance and Colorado Option programs continue to deliver for Coloradans," said Colorado Insurance Commissioner Michael Conway. "By the end of 2025, the Reinsurance Program will have reduced premiums by over $2 billion. I couldn't be prouder that the cheapest Colorado Option is more than 10% cheaper than the cheapest non-Colorado Option plan in many places throughout the state. Now the DOI team will dig deeper into these filings to find even more savings."

Individual Market
Over 96% of Coloradans will be able to choose plans from at least two insurance companies for individual plans available through Connect for Health Colorado (Colorado's on-exchange marketplace), and over 75% of Coloradans will be able to choose plans from five or more companies. Each company offers multiple plans across multiple metal tiers / price levels.

Percentage of Current Individual Market Enrollees with Accessibility to Multiple Insurance Companies

Overall, 219 plans will be available in the individual market from six companies, Anthem (HMO Colorado), Cigna, Denver Health, Kaiser Foundation, Rocky Mountain HMO and Select Health.

On-Exchange Plans for 2025

Individual Market Plans 2025 - On-Exchange

Off-Exchange Plans for 2025

Individual Market Plans 2025 - Off-Exchange

The DOI's preliminary review indicates that the consumer impact for all individual plans from all companies will be an average 5.5% increase in premiums. This is based only on what the insurance companies have requested, not what has been approved. Over the next few months, the DOI will conduct in-depth analyses of every company's filings to ensure that the requested premiums can be justified. It is likely that the average premium increase could go down, while Reinsurance Program savings could increase.

Individual Market 2025 - Requested Premium Changes

Small Group Plans
In the small group market (for small businesses with less than 100 employees), six insurance companies - Anthem's HMO Colorado, Anthem's Rocky Mountain Hospital & Medical Services, Kaiser Foundation of Colorado, Kaiser Permanente, United Healthcare Insurance Company and United Healthcare of Colorado - plan to offer 349 plans across the state for 2025, including 30 Colorado Option plans. The DOI's initial analysis shows that the consumer impact of all plans for all companies will be an average increase of approximately 8%.

Small Group Market 2025 - Requested Premium Changes 2025

Health Insurance Review Stakeholder Meeting - July 25
The plans and requested premiums from the insurance companies, also called filings, are available for comment and are accessible from the DOI's "Insurance Plan Filings & Approved Plans" website. Comments must be received by Aug. 14.

Additional graphs and charts detailing the preliminary information for 2025 can be found on the DOI website "Health Insurance - Plans and Premiums Information."

In addition, the DOI will host a virtual public meeting on Thursday, July 25, at 9:30. At this meeting, DOI staff will discuss key elements in the preliminary analysis of the companies' filings, as well as review the steps for members of the public to access and comment on these filings. Find more information on the DOI website - You're Invited: Stakeholder Meeting - Preliminary Information on the 2025 Health Insurance Plans and Premiums - and register via Zoom for the meeting.

Approved Plans in October
The final, approved plans and premiums will be made available in mid-October. Throughout the summer and into early fall, the DOI will review all the information the companies filed to ensure that changes in premiums are justified and that the plans comply with state and federal regulations.

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