Division of Insurance approves health insurance plans for 2017

Wednesday, October 12, 2016 03:02 PM

The Colorado Division of Insurance has approved 277 health insurance plans for the individual market in 2017 and 667 plans for the small group market. The individual market (plans not connected to an employer) makes up about 7.7 percent of the Colorado population who have health insurance (around 450,000 people), while at least 51 percent of Coloradans get their insurance through a small or large employer. DOI reviews the cost of health insurance premiums and checks that they meet state and federal regulations. They do not set insurance premiums.

Premiums for individual plans (not from an employer) will increase by 20.4 percent on average. An individual’s age and residential location will impact his or her premium, making it higher or lower from the average. In the small group market (health plans for small employers), increases are more moderate, averaging 2.1 percent. The DOI attributes this to insurers in this market having more experience working with this market and a better understanding of how to price their products.

Colorado consumers who receive tax credits for their insurance may see their premiums decrease. A person who currently receives a tax credit for their 2016 insurance and who enrolls in the same plan for 2017 will see an average decrease of 11 percent for their subsidized premium, despite actual premium increases for plans.

The Division of Insurance is engaging a workgroup of representatives from Colorado hospitals, physicians and insurance companies to address increasing health care costs. This group will release its recommendations in December.

Read more here in a DOI press release.