Brown University’s School of Public Health has released research examining the effects of the Colorado Option on individual health insurance premiums in Colorado. The study found that the introduction of Colorado Option plans led to premium reductions exceeding $100, including for non-Option plans. According to the researchers, these reductions contrast with trends in other states, where annual health insurance premiums have increased by nearly 10%.
The research was supported by the Commonwealth Fund, a private foundation based in New York City focused on independent healthcare research and improving healthcare policy. The analysis reviewed changes in individual market premiums for the lowest- and second-lowest-cost silver plans in Colorado compared to similar states. It controlled for factors such as age, rating area, plan actuarial value, and the number of insurers on the exchange.
The findings suggest that public option plans like those implemented in Colorado may provide more affordable premium options for people enrolled in the individual market. This is particularly notable in areas with high provider and hospital prices.
Researchers stated: “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 consumers in Colorado, this means lower premiums not only for those enrolled in Colorado Option plans but across all individual market offerings. Enrollees also pay less out-of-pocket for coverage that is designed to be easier to use.
Division of Insurance Commissioner Michael Conway commented: “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 designed to make healthcare more affordable by allowing consumers and small businesses to compare plans across all insurers and select what works best for them. All essential health benefits required by the Affordable Care Act are covered, with clear information about costs provided upfront. Many services, including primary care visits and mental health office visits, are available at no cost to consumers under these plans.
Further details about the research can be accessed through Brown University’s School of Public Health.
