President Donald Trump’s decision to stop paying health insurers so-called “Cost Sharing Reductions” will lead to additional premium increases in Colorado’s individual market.
Friday, the Colorado Division of Insurance announced an additional 6 percent increase to 2018 plans offered on the individual market. Before Friday, the state had already approved a 26.7 percent average increase for the same plans.
The bottom line is that next year, those premiums will jump by nearly a third.
The individual market represents a small fraction of the total insurance market. Close to half of all Coloradans receive health insurance from their employers.
The president’s decision to immediately halt CSR payments to insurance companies will not impact the nearly 45,000 Coloradans who receive what amount to subsidies to help offset out-of-pocket costs for copays and deductibles through the program.
Insurance companies remain obligated under federal law to take the loss.
The premium increases represent their remedy for that.
Coloradans who make up to 250 percent of the Federal Poverty Level are eligible for the assistance.
In addition, Coloradans who make up to 400 percent of the Federal Poverty Level remain eligible for tax credits to help offset premiums.