Market destabilized by Congress’ decision not to extend increased subsidies, insurance commissioner says
About 96,000 Coloradans who purchase health insurance through the individual marketplace may need new plans after two major companies announced significant cutbacks, state officials said Wednesday.
Rocky Mountain HMO informed the state it will drop 20 plans in seven Denver-area counties, affecting about 26,000 enrollees, according to the Colorado Division of Insurance.
Anthem’s HMO Colorado will make even deeper cuts, dropping 62 plans that cover roughly 70,000 people — about two-thirds of Anthem’s individual-market members in the state.
This year, about 296,000 people enrolled in marketplace plans, meaning roughly one in three could need to switch plans.
Anthem spokeswoman Emily Snooks said the company filed notices for every plan it might drop due to state deadlines but hopes to reverse some cuts after the rate review process concludes.
“We hope to withdraw this notification and offer plans in as many regions as possible once the state rate review is complete. Most importantly, Anthem will remain in any community where our departure would otherwise leave Coloradans without coverage options,” Snooks said.
Rocky Mountain HMO hasn’t yet responded to requests for comment.
Both carriers are dropping plans in Adams, Arapahoe, Broomfield, Denver, Douglas, Elbert, and Jefferson counties. Anthem will also exit Boulder, Clear Creek, El Paso, Gilpin, Larimer, Park, Mesa, Teller, and Weld counties.
According to the Division of Insurance, all affected counties will still have at least one marketplace insurer. People losing coverage will receive notices at least 90 days before Jan. 1.
Colorado Insurance Commissioner Michael Conway blamed Congress’ decision not to extend pandemic-era subsidies for destabilizing the market. He added that lawmakers could allocate state funding to stabilize rates during an upcoming special session, but the state’s $783 million budget shortfall could make that difficult.
Premiums are projected to rise an average of 28% next year as subsidies end and healthier individuals drop coverage. Rocky Mountain HMO and Anthem have forecast even larger increases of 36.4% and 33.6%, respectively.
In June, the state estimated that 110,000 people could lose individual marketplace coverage if enhanced subsidies expired and enrollment rules under H.R. 1 — the “Big Beautiful Bill” — made access harder. Updated projections haven’t been released.
“DOI is doing everything possible to stabilize the market,” Conway said, “but without action now, hardworking people are going to face devastatingly high rate increases, and more than a hundred thousand people will lose coverage as a result.”
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Katie is a senior who has been on staff for three years. Her favorite type of stories to write is reviews and features. Katie’s favorite ice cream flavor is strawberry.
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