Colorado Option Health Plan Research Findings

CO DORA Press Releases

Published January 15th, 2025

Detected February 27th, 2026

Summary

Brown University research indicates the Colorado Option health plan has led to premium reductions of over $100 for individual market plans, including non-Option plans. The findings suggest public option plans can improve affordability, especially in areas with high healthcare provider and hospital prices.

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What changed

Brown University's School of Public Health has released research, supported by the Commonwealth Fund, detailing the impact of the Colorado Option health insurance plan. The study estimates that the Colorado Option has resulted in individual market premium reductions exceeding $100, even for plans not part of the Option, contrasting with national trends of nearly 10% annual premium increases. The research focused on silver plans and controlled for various factors, concluding that public option plans can enhance affordability for consumers.

This notice serves to inform compliance officers and legal professionals about the positive findings regarding the Colorado Option's impact on healthcare affordability in Colorado. While this is a research finding and not a new regulatory mandate, it highlights the potential effectiveness of public option models. Regulated entities operating in Colorado's health insurance market should be aware of these findings as they may influence future policy discussions and consumer choices.

Source document (simplified)

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

Wednesday, January 15, 2025

Submitted by [user:fieldfirstname] 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 .