DENVER — Imagine opening your mailbox to find that your health insurance premium will double. For thousands of Coloradans who rely on the state's individual marketplace, Connect for Health Colorado, this scenario will become a reality next week.
According to the Colorado Division of Insurance (DOI), a family of four in Denver earning $128,000 per year will have a premium increase of $14,000 next year. That same family living in a rural area of Colorado will see an increase from $16,000 to nearly $21,000.
“What we're talking about here is people losing access to health care,” said Colorado Insurance Commissioner Michael Conway.
The average 101% increase on individual market plans is because federal enhanced premium tax credits will expire on Dec. 31. These tax credits, established by the Affordable Care Act, have made health care financially achievable for Americans who purchase insurance through health care exchanges by reducing the maximum household contribution.
As policymakers debate the tax credits' future, their potential loss looms large for many families.
These health care subsidies are at the center of the current government shutdown. Democrats refuse to sign a funding bill to reopen the government without extending healthcare subsidies. Republicans, meanwhile, want to negotiate healthcare subsidies after the government is back open.
The Congressional Budget Office found that permanently expanding ACA enhanced premiums would increase the deficit by $350 billion from 2026-2035 while also increasing the number of people insured by 3.8 million. According to the DOI, 225,000 Coloradans depend on these tax credits.
If Congress extends the tax credits, DOI said the average premium increase for Coloradans would be 16% instead of 101%.
Colorado Insurance Commissioner Michael Conway said it’s not too late for Congress to act.
“We're at the stage where it's going to be messy, it's going to be bumpy, if and when, hopefully, they do act, but we will take messy over the abject disaster that's coming our way if Congress continues to fail to act,” Conway said.
Increased costs will weigh heavily on Americans already stretched thin financially, and some will choose to go without insurance.
DOI advises people to shop around for health insurance. State officials expect many people to change to cheaper plans to keep health care costs down.
Ultimately, the Colorado Division of Insurance estimates 75,000 Coloradans will lose access to health coverage. Conway said in the long term, the loss of healthcare coverage for tens of thousands will increase the costs of employer-based insurance as the market adjusts.
“There's no corner of our healthcare ecosystem that's going to be safe from the disaster that is coming, if Congress fails to act,” he said.
Open enrollment for 2025 individual health insurance starts Nov. 1 and lasts until Jan. 15, 2026.
