Colorado Health insurance Market Faces Disruption: Nearly 100,000 May Need new Plans
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Denver, Colorado – August 20, 2025 - A significant shift is unfolding in Colorado’s health insurance landscape, potentially impacting nearly 100,000 residents who purchase coverage through the individual marketplace. Two major insurance providers, Rocky Mountain HMO and Anthem‘s HMO Colorado, have announced substantial reductions in their plan offerings, prompting concerns about access and affordability.
Key Changes and Affected Residents
Rocky Mountain HMO will discontinue 20 plans across seven counties in the denver metropolitan area, affecting approximately 26,000 individuals.Anthem’s HMO Colorado is planning even more extensive cuts, dropping 62 plans and potentially impacting around 70,000 enrollees – representing roughly two-thirds of its individual market members in the state.
Did You Know?
colorado’s individual health insurance marketplace currently serves approximately 296,000 people, meaning these changes could affect roughly one in three enrollees.
The affected counties include Adams, Arapahoe, Broomfield, Denver, Douglas, Elbert, and Jefferson. Anthem’s reductions extend to Boulder, Clear Creek, el Paso, Gilpin, Larimer, Park, Mesa, Teller, and Weld counties as well.
Company Statements and Mitigation Efforts
Emily Snooks, a spokesperson for Anthem, indicated the company’s initial filings reflected a broad range of potential plan withdrawals due to state deadlines. “we hope to withdraw this notification and offer plans in as many regions as possible once the state rate review is complete,” Snooks stated. “Most importantly, Anthem will remain in any community where our departure would otherwise leave Coloradans without coverage options.” Representatives from Rocky Mountain HMO have not yet responded to requests for comment.
State officials assure residents that all affected counties will continue to have at least one insurance provider available in the individual market. Individuals whose plans are discontinued will receive a notice at least 90 days before the end of the year, providing time to explore alternative options.
Factors Contributing to the Market Shift
Colorado Insurance Commissioner Michael Conway attributes the instability in the market to the expiration of increased subsidies implemented during the pandemic. These subsidies, designed to make health insurance more affordable, played a crucial role in maintaining participation and stabilizing premiums. The failure of congress to extend these subsidies has created a ripple effect, leading insurers to reassess their offerings. According to a study by the Kaiser Family Foundation, the loss of enhanced premium tax credits can substantially increase out-of-pocket costs for consumers [KFF].
The state legislature is considering potential funding to stabilize the market during an upcoming special session.However, a $783 million budget gap presents a significant challenge to allocating additional resources.
The Colorado Division of Insurance previously estimated that monthly premiums will rise by an average of 28% in the coming year, driven by the reduction in subsidies and the potential for healthier individuals to opt out of coverage due to higher costs. Rocky Mountain HMO and Anthem projected even steeper increases of 36.4% and 33.6%,respectively.
Pro Tip:
Explore all available options, including cost-sharing reduction plans, if you qualify, to mitigate premium increases.
Key Data Summary
| Insurance Provider | Plans Dropped | Affected Enrollees | Counties Impacted |
|---|---|---|---|
| Rocky Mountain HMO | 20 | 26,000 | Adams, Arapahoe, Broomfield, Denver, Douglas, Elbert, Jefferson |
| Anthem’s HMO Colorado | 62 | 70,000 | Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Elbert, El Paso, Gilpin, Jefferson, Larimer, Mesa, Park, Teller, Weld |
| Total | 82 | 96,000 | Multiple |
In June, the state estimated that approximately 110,000 people could lose coverage if the enhanced subsidies expired and changes in H.R. 1, known as the Big Gorgeous Bill, created enrollment barriers. The Division of Insurance is actively working to stabilize the market, but Commissioner Conway warned that without immediate action, “hardworking people are going to receive devastatingly high rate increases and more than a hundred thousand people will lose coverage consequently.”
What steps will Colorado take to ensure affordable healthcare access for all residents? How will the state legislature address the budget constraints while prioritizing health insurance stability?
Looking Ahead: Trends in Colorado’s Health Insurance Market
colorado’s health insurance market, like many across the nation, is facing ongoing challenges related to affordability, access, and sustainability. The expiration of pandemic-era subsidies is a major factor, but other trends are also at play. These include rising healthcare costs, an aging population, and increasing prevalence of chronic conditions.The state’s commitment to expanding Medicaid and exploring innovative insurance models will be crucial in addressing these challenges and ensuring that all Coloradans have access to quality,affordable healthcare.
Frequently asked Questions About Colorado health Insurance Changes
- what is happening with health insurance in Colorado? Two major insurers, Rocky Mountain HMO and Anthem, are reducing their plan offerings, potentially impacting nearly 100,000 residents.
- Will I still be able to get health insurance if my plan is dropped? Yes, all affected counties will continue to have at least one insurance provider available.
- When will I be notified if my plan is being discontinued? You will receive a notice at least 90 days before the end of the year.
- Why are these changes happening? The expiration of increased federal subsidies and market dynamics are contributing factors.
- What is the state doing to address this issue? the state is exploring funding options and working to stabilize the market.
Disclaimer: This article provides general data and should not be considered medical or financial advice. Consult with a qualified professional for personalized guidance.
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