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Health and homeowner insurance premiums across Colorado are climbing sharply, with state regulators confirming steep rate increases for 2026 that could double costs for many families.
The Colorado Division of Insurance said Monday that health-insurance premiums on the individual market will rise an average of about 101 percent next year — affecting roughly 200,000 residents who buy coverage through the state’s Connect for Health Colorado marketplace. According to reporting by CPR, the scheduled expiration of enhanced federal tax credits at the end of the year are driving the increases.
These enhanced subsidies were a Biden-era pandemic response, created under the American Rescue Plan Act of 2021 and extended by the Inflation Reduction Act of 2022. Without them, consumers will pay the full, unsubsidized price for their coverage. The Division of Insurance estimates that a family of four earning around $128,000 in the Denver metro area could see annual premiums rise by about $14,000 for a midlevel “silver” plan. In rural and mountain counties, the same family could face increases between $16,000 and $21,000 because of higher base rates, according to the Gazette.
Newsline cites Democrat officials claiming roughly 75,000 Coloradans could lose individual coverage when the subsidies end. The hikes apply only to people who buy insurance on their own, not those covered through employers or public programs.
Earlier this year, the legislature approved a $100 million Health Insurance Affordability Fund and continued the state’s reinsurance program, which reimburses insurers for high-cost claims. Those measures cut what could have been a 174 percent increase down to roughly 101 percent, according to state data. Notably, the pandemic — for which these subsidies were created — ended years ago. Also, why is the state [ultimately, the taxpayers] reimbursing insurers for high cost claims?
State officials and insurers largely agree that the higher premiums stem from federal subsidy changes and rising health-care costs. Debate in Washington continues over whether to renew the tax credits, which were designed to expire at the end of 2025. Notably, state officials and insurers may benefit the most from all the subsidies.
Homeowners are also feeling pressure. Colorado ranks among the top 10 states nationally for property-insurance premium growth, with an average 11 percent increase in 2025, according to industry data compiled by Business Insider. Insurers cite escalating losses from hail, wildfire, and smoke damage, as well as higher rebuilding and reinsurance costs. Some homeowners in the Denver suburbs report premiums more than doubling even without filing claims, according to reporting from The Colorado Sun.
The changes come as several insurers have withdrawn from Colorado’s marketplace, affecting about 96,000 enrollees and reducing competition statewide, the Division of Insurance said.
Regulators warn that fewer coverage options and higher prices could strain families’ budgets and drive up uncompensated care at hospitals. On the home insurance side, insurers are choosing not to renew and write new policies, and legislators are updated Colorado's FAIR Plan (insurer of last resort) to begin writing policies in April 2025. That bill (HB25‑1205) clarified that the FAIR Plan Association is NOT a state agency, political subdivision, or insurance company, and it established its legal status and operational boundaries — including granting the FAIR Plan immunity from most legal actions, limiting claims to breaches of contract or the covenant of good faith and fair dealing.
Immunity from most legal actions...
Analysts say the situation highlights how sensitive state insurance markets are to federal policy shifts and insurer participation. It seems that literal market manipulation is an acceptable foundation for this entire ecosystem.
While the impact is most visible in Colorado, similar rate pressures are appearing nationwide. In Colorado, lawmakers appear to have failed making healthcare more affordable, succeeding only in making it more federally subsidized.
That is, and will always be, unsustainable. And it's the opposite of free.
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