Payers can't meet Colorado's public option price targets

Several payers said it will be impossible to meet Colorado's price targets for its Colorado Option program in 2024, The Colorado Sun reported March 24. 

The Colorado Option, which took effect last year, requires insurers in the state to offer ACA exchange plans with set benefits at progressively lower price targets. 

In filings with the state's Division of Insurance, only one payer, Denver Health Medical Plan, said it would be able to meet the price target for all of its offerings in 2024. 

Two carriers, Cigna and UnitedHealthcare, said they expected to meet the targets on a few of their plan offerings. 

In filings, Anthem wrote that the pricing targets do not take into account current utilization trends and prevent payers from offering "actuarially sound" plans. 

Payers also missed Colorado's premium targets for 2023, with only one of eight carriers meeting the state's benchmarks with all their Colorado Option plans. 

The state will hold rate review hearings with payers this summer, where insurance regulators will question plans about their proposed rates. Colorado lawmakers are also considering legislation that would allow the state to cap how much money payers can set aside as profit on Colorado Option plans. 

Around 35,000 people signed up for the Colorado Option in its first year. 

Read more here. 

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