Coloradans who do not get health insurance through their jobs could see their premiums increase by hundreds or even thousands of dollars a year under the new GOP tax and spending law, according to the Colorado Division of Insurance.
Insurers have asked to increase rates by 28% on average but people who qualify for tax credits designed to help low-income workers afford coverage, which are set to expire Dec. 31, could see increases of 171 % or even higher.
Adam Fox, deputy director of the Colorado Consumer Health Initiative, said Coloradans could also face additional out-of-pocket costs.
"People will see higher deductibles, and higher out-of-pocket maximums," Fox pointed out. "It’s going to be more expensive for people to seek care. And ultimately we know that means that in a lot of cases people delay or forego care that they need."
Congress expanded access to premium tax credits at the onset of COVID to help more people get coverage, but an amendment to extend the credits was removed from the final bill, which also cuts Medicaid by $1 trillion. Republicans said President Donald Trump’s signature legislation will fund campaign promises including mass deportations, tax cuts and other priorities by shrinking the federal government and eliminating what they believe is unsustainable spending.
Last year, 92% of people in the individual marketplace qualified for the tax credits, which helped more than 100,000 Coloradans keep their health insurance. As people face higher costs, Fox warned they may stop filling prescriptions to manage chronic conditions, delay treatment and ultimately end up on the hook for much more expensive emergency care.
"All of those things add up to higher medical bills," Fox emphasized. "The end result is probably going to be many more Coloradans landing in medical debt and financial instability."
The Colorado Division of Insurance is taking public comments on rate increases, which are expected to affect 321,000 Coloradans, until this Friday.
Fox added his team will be paying attention to ensure regulators do not allow insurance companies to take advantage of the new law to inflate rates and pad profits, more than is needed for stability in the individual insurance market.
