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Colorado’s Health Insurance Rates to Increase Modestly in 2021

August 1st, 2020 – The Colorado Division of Insurance announced preliminary rate increases for Colorado’s small business and individual health insurance market for 2021.

Colorado’s small group market for employers is looking at an average proposed increase of  5.7% for 2021.   Aetna and Humana have the largest increases (both as high as 15.2%), whereas Anthem, Kaiser and United Healthcare’s increases fall into the 2.8 to 7.3% range.

For Colorado’s individual market, the average proposed increases are projected to be 2.2% statewide, but rates will vary by geography.  Overall, it will be the same 9 insurance companies offering individual plans in 2021 as we currently have in 2020.  However, thanks to expanding coverage in several rural Colorado counties by Bright Health and Rocky Mountain Health Plans, areas with just one insurance carrier will be reduced from 22 to 10 counties next year.

Grand Junction, Eastern and Western Colorado counties actually saw rate decreases. Metro-Denver’s rates will increase an average of 1.6%, while Pueblo had the largest increase of 9.8%

Projected rate changes are:

  • Boulder metro area: 3% increase
  • Denver metro area: 1.6% increase
  • Colorado Springs metro area: 1.6% decrease
  • Eastern non-metro counties: 5.6% increase
  • Fort Collins metro area: 7.8% increase
  • Grand Junction metro area: 0.3% decrease
  • Greeley metro area: 7.7% increase
  • Pueblo metro area: 9.8% increase
  • Western non-metro counties: 0.5% decrease

The rate increases for Colorado’s individual market would have been roughly 17% higher without Colorado’s reinsurance program, which was just extended for 5 more years.

Colorado Governor Jared Polis said, “Saving people money on health care has never been more important and I’m proud the reinsurance program will help bring more relief to hardworking people during this challenging time for many individuals and families across our state by keeping premiums down by an average of 17% in the individual insurance market. We keep working to prevent Coloradans from being ripped off on health care costs and I’m excited to have worked with the legislature to extend and build on the success of the bipartisan reinsurance program.”

The preliminary rate filings for the small group and individual health insurance markets are not yet approved by the Colorado Division of Insurance.  It remains to see if COVID-19 may impact the final rates for the coming year.


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