The reinsurance program was signed into law in 2019 and has reduced premiums by $1.1 billion to date. Colorado Option plans launched in 2023 and require individual and small group insurers in the state to offer ACA plans with set benefits at progressively lower price targets. Over 35,000 people have enrolled to date, according to an Aug. 30 news release.
The pass-through funds will be used to lower premiums, provide direct subsidies to lower out-of-pocket costs and support the OmniSalud program, which allows undocumented residents to apply for Colorado Option plans.
“This is unprecedented. Not only is this the largest amount of pass-through funding we have seen, it is an acknowledgment from the federal government of the savings from the Colorado Option, teaming up with the reinsurance program for a one-two punch in saving people money on healthcare,” Colorado Insurance Commissioner Michael Conway said.
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