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Health Premiums to Rise 101%, Hitting Thousands in Colorado

DORA ATTRIBUTES IT TO CONGRESSIONAL INACTION

Newsroom El Comercio de Colorado

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The Colorado Department of Regulatory Agencies (DORA) announced that health insurance premiums in the state’s individual market will increase by an average of 101 percent in 2026, effectively doubling the costs for about 225,000 people who purchase their own coverage through Connect for Health Colorado (C4HC). The increase is primarily due to the failure of Congress to extend enhanced premium tax credits, which are set to expire on December 31, 2025.

The Colorado Division of Insurance (DOI), part of DORA, explained that the impact will be severe. About 75,000 residents could lose their health coverage because they will be unable to afford the new prices. “These increases will force impossible decisions for families across the state,” warned Insurance Commissioner Michael Conway. “We have sounded the alarm over and over again, but Congress’s refusal to act leaves Coloradans facing unacceptable bills amid an already strained economy,” he added.

Congress Failed to Extend Tax Credits

The DOI emphasized that the lack of extension of the federal tax credits is the main factor behind the increase. These credits, established in 2021, have significantly reduced coverage costs for millions of Americans. Without them, a family of four in the Denver metro area earning $128,000 annually could see an increase of $14,000 in their yearly bill for a silver-level plan. In rural areas such as the San Luis Valley or the Western Slope, the increase could exceed $20,000.

The division clarified that if Congress extended the tax credits, the average premium increase would drop sharply—from 101 percent to only 16 percent—and some consumers would not experience any increase at all. State officials highlighted the role of HB25B-1006, passed during the August legislative session, which helped mitigate part of the impact. The law provides $220 million in direct consumer assistance and reduced the projected premium hike from 174 percent to the current 101 percent.

Additionally, the legislation allows about 28,000 more people to keep their coverage. The law funds the state’s reinsurance program and provides direct premium subsidies through the Health Insurance Affordability Enterprise. This framework stabilizes the market, offering insurers more certainty and lowering final costs for consumers. According to the DOI, the reinsurance program will reduce policy prices by an average of 21.3 percent statewide, with greater benefits in rural and mountain areas where health care costs tend to be higher.

Reactions

Consumer advocacy organizations argue, however, that the state’s efforts will not be enough without a federal response. Mannat Singh, executive director of the Colorado Consumer Health Initiative, called the situation “a crisis created by political decisions.” According to Singh, “Colorado families will have to choose between paying for their health insurance or paying rent. This increase is not fiscal responsibility—it’s moral negligence.”

Singh directly blamed federal legislation promoted during the Trump administration and lawmakers who opposed maintaining the tax credits. “When Congress fails to act, Coloradans pay the price,” she emphasized. The open enrollment period for 2025 health plans begins November 1. Authorities urge consumers to review all available options, including Colorado Option plans, which offer free primary care and mental health visits.