The Colorado House has passed a bill that would look to mitigate the impact of the looming expiration of enhanced ACA premium tax credits at the end of 2025 by providing up to $100 million in state funds to stabilize the individual market.
The legislation outlines the use of a $100 million interest-free loan that would be allocated toward the state’s reinsurance program, which would help reduce premiums and help insurers lower rates for individuals eligible for the tax credits.
Colorado has more than 300,000 residents enrolled in ACA coverage, with an estimated 100,000 people losing coverage if the tax credits expire. For those remaining enrolled, the state’s insurance department has said that premiums could rise by 100% to 200% next year. UnitedHealthcare and Elevance have already announced plans to discontinue coverage for several plans in the market, affecting 96,000 people.
Insurers nationwide have requested a median 15% rate increase for 2026, citing both the anticipated expiration of the tax credits and rising medical costs.
