Brown University’s School of Public Health has released new research analyzing the effects of the Colorado Option on individual health insurance premiums in the state. The study, funded by the Commonwealth Fund, compared premium changes in Colorado to those in other states.
The researchers found that introducing Colorado Option plans led to premium reductions of over $100, not only for those enrolled in these plans but also for non-Option plans. In contrast, other states have seen health insurance premiums rise by nearly 10% each year.
The analysis focused on premiums for the lowest- and second-lowest-cost silver plans and controlled for factors such as age, rating area, plan actuarial value, and the number of insurers participating in the exchange. The findings suggest that public option plans like Colorado’s may offer more affordable options for people purchasing their own insurance, especially where provider and hospital prices are high.
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 across all individual market plans. Those enrolled in Colorado Option plans pay less for coverage that is designed to be easier to use with fewer out-of-pocket costs.
Michael Conway, Commissioner of the Division of Insurance, said: “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 was developed by the Division of Insurance alongside community members and consumer advocates. It allows individuals and small businesses to compare plans easily across different insurers. All essential health benefits required by the Affordable Care Act are included, with clear information about service costs upfront. Many services—such as primary care visits and mental health office visits—are covered at no cost to consumers.
More details about this research can be found at Brown University’s website.
