Colorado Option Lowers Premiums and Saves Coloradans Money - Findings From Brown University Research

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Division of Insurance - Vincent Plymell
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Division releases annual Complaint and Recoveries Report.

DENVER - Brown University's School of Public Health released research estimating the individual market premium impacts of the Colorado Option.

In their analysis comparing premiums across different states, the researchers found that the addition of Colorado Option plans to the individual market led to premium reductions of over $100, even for non-Option plans. The researchers note that these reductions, driven by the Colorado Option, are in stark contrast to other states, where health insurance premiums have increased by nearly 10% annually.

The premium and health care cost reductions from the Colorado Option set Colorado apart when compared to other states, where health care costs and premiums have increased by nearly 10% annually.

The research, supported by the Commonwealth Fund, a national, private foundation based in New York City that supports independent research on health care issues and makes grants to improve health care practice and policy, examined the impact of the Colorado Option on premiums for the lowest- and second-lowest-cost silver plans.

The analysis looked at changes in individual market premiums in Colorado compared to similar states and was controlled for age, rating area, plan actuarial value, and the number of insurers on the exchange. The findings point to the potential for public option plans to offer more affordable premium options for people enrolled in the individual market, especially in places with high health care provider and hospital prices.

Researchers on the report noted, "These findings are encouraging for the future of public standardized options. The Colorado Option helps to provide affordable coverage while managing premium increases that come from increased hospital and provider prices."

For Colorado consumers, this means that the Colorado Option is working. Premiums are lower not only for Colorado Option plans, but for all plans in the individual market. And enrollees in Colorado Option plans pay less for coverage that is easier to use with fewer out-of-pocket expenses.

Division of Insurance Commissioner Michael Conway, shared: "The Colorado Option encourages people to go beyond just having insurance and actually use it with transparent pricing and benefits that they can use. We're glad to see this research from Brown back up the great things being accomplished."

The Colorado Option is a health insurance plan that aims to make health care more affordable for Coloradans. As part of the Colorado Option, the Division, in partnership with the community and consumer advocates, built a benefit design which allows consumers and small businesses to easily compare plans across all health insurance companies and choose the plan that is right for them. These plans cover all essential health benefits required by the Affordable Care Act (ACA) and the benefit design makes it easier to know what you will pay in advance for services, such as visiting a doctor or filling a prescription. Colorado Option plans also cover many services, such as primary care visits and mental health office visits, at $0 cost to the consumer.

Research can be found here.

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About the Division of Insurance:

The Colorado Division of Insurance (DOI), part of the Department of Regulatory Agencies (DORA), regulates the insurance industry and assists consumers and other stakeholders with insurance issues. Visit doi.colorado.gov for more information or call 303-894-7499 / toll free 800-930-3745.

About DORA:

DORA is dedicated to preserving the integrity of the marketplace and is committed to promoting a fair and competitive business environment in Colorado. Consumer protection is our mission. Visit dora.colorado.gov for more information or call 303-894-7855 / toll free 800-886-7675.