October 19th 2024.
According to the Polis administration, Colorado's reinsurance program is expected to provide significant savings to individuals purchasing health insurance on the individual market. These savings are estimated to be around $493 million next year, compared to the potential increase in premiums without the program in place. It's a promising solution that aims to alleviate the financial burden for those seeking health coverage on their own.
The statewide impact of the reinsurance program is projected to result in an average premium increase of 5.6% for individual plans, while small-group plans may see a slightly higher increase of 7.1%. The program acts as a safety net for insurance companies, limiting the amount they are responsible for paying out for individuals with costly medical needs. This, in turn, allows them to offer lower premiums, and reduces the need for the federal government to provide tax credits to support marketplace insurance purchases. Under approval from the federal government, Colorado will utilize these savings to further decrease monthly premiums.
According to a news release from Gov. Polis' office, it is estimated that by 2025, premiums could be up to 24% lower than they would have been without the reinsurance program. The exact amount of savings for each individual will depend on various factors such as location, age, and the number of family members covered under the plan. On average, a 40-year-old purchasing individual coverage could see a savings of $1,500 per year. Residents of the Western Slope are expected to see more significant savings, while those living near the Front Range may experience a smaller change in premiums.
For those interested in enrolling in the marketplace, open enrollment will begin on November 1st and run through January 15th. This is a crucial opportunity for individuals to secure health insurance coverage, and it's essential to stay informed and up-to-date on the latest health news. To ensure you don't miss any important updates, sign up for our weekly newsletter and have health news delivered straight to your inbox. With the reinsurance program in place, Coloradans can have peace of mind knowing that their health insurance costs will be more manageable and affordable.
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