Two large health insurers that had signaled they were ready to leave Colorado's individual market in several counties now say they will stay, according to a release from the Colorado Division of Insurance.
The about-face comes after state lawmakers passed a bill during a special session that provides $100 million to reduce rising premium costs in the individual market.
Rocky Mountain HMO and Anthem's HMO Colorado filed discontinuation notices with the state's insurance division in August, saying they would pull plans from the individual market. That move was prompted by the Republican majority in Congress declining, in the federal budget bill, to extend tax credits that help Coloradans afford plans on the individual market.
The state's insurance commissioner said if Congress doesn't extend the credits, residents' premiums will skyrocket next year.
“The expiration of the enhanced premium tax credits is the biggest threat to market stability,” said Commissioner Michael Conway. If Congress doesn’t extend them, at the beginning of next year, “most Coloradans enrolled in the individual market will see their premiums skyrocket and tens of thousands of Coloradans will lose coverage.”
Last week, a bipartisan bill was introduced in the U.S. House to temporarily extend the credits.
Almost 225,000 Coloradans depend on the enhanced premium tax credits — which expire Dec. 31 — to afford health coverage in the individual market, according to the division. Congress would need to act before the end of September for carriers to adjust rates before the start of the open enrollment period in November.
“Without their renewal, a family of four with an annual income of $128,600 can expect to see premiums increase from $13,000 to as much as $25,000 next year for a mid-level plan,” according to the release.
More than 100,000 Coloradans are already expected to lose coverage if tax subsidies are not renewed, according to estimates from the state.
About 96,000 Coloradans would have been affected by plans being discontinued by Rocky Mountain HMO and Anthem, according to the division.
