Insurance rates in Colorado receive approval for increase

insurance rates rise

Regulators have now given their permission to increase premiums by 1 percent.

Colorado state regulators have now given their approval to raise the insurance rates for over 1,000 different health plans that are being offered by more than 20 different carriers, for 2015.

Though not all of those plans will see increased rates, the average will be a very slight premiums rise.

When compared to the previous year, the insurance rates will be increasing by an average of 1.18 percent, next year. The areas that typically face the highest health premiums, such as the West Slope rural communities and mountain resorts, have been benefiting from the consolidation by the Division of Insurance of two rating zones into a single one. Therefore, their rates for next year will actually be falling by an average of 7.44 percent across all of the insurers.

There are other parts of the state in which insurance rates will also be dropping, instead of rising.

health insurance ratesFor example, the communities from Eastern Plains have been consolidated with the southern rural areas, bringing about a reduction in the average premiums by 5.01 percent. The insurance commissioner in the state, Marguerite Salazar, said that “It’s a good start.” She went on to say that the declines that occurred were the result of the amalgamation of new rating areas as well as “good negotiations” that occurred health care providers and carriers. She also pointed out that decreasing rates were assisted by the improved cost transparency that resulted from the implementation of the Affordable Care Act.

Some of the lowest health insurance premiums have been seen by individuals living in urban areas. When the Fort Collins and Greeley areas’ low cost plans were compared, there will now be an average increase of 5.26 and 4.57 percent, respectively.

The average increase for the insurance premiums for 2015 is 1.18 percent. It is broken down into two primary components. There will be an increase in the rates for individual plans by an average of 0.71 percent, next year, and an average rise of 2.54 percent for small group plans, when compared to last year.

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