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The Rising Health Insurance Costs in Colorado

The website for Connect for Health Colorado, the state’s individual insurance marketplace.
David O. Williams/Vail Daily

Impact of Premium Increases on Individuals and Families

As the January 15 deadline approaches for February 1 individual market health insurance enrollment, many individuals and small business owners in Colorado are reeling from the shocking rise in premiums. According to Eagle health insurance broker Bethe Wright, the significant increase in costs has led many to reconsider their insurance options, as premiums for some have nearly tripled at the start of the year. Despite this, many of her clients remain steadfast in their need for health coverage, as the necessity often outweighs the financial burden.

Wright noted that many families find themselves in complicated situations. “For instance, if a child has health issues, the need for insurance becomes paramount. They simply cannot risk going without coverage—we’ll pay whatever it costs because we have no choice,” she lamented. Unfortunately, this sentiment is not isolated; it reflects a broader struggle within the community.

Reasons Behind the Surge in Cost

The skyrocketing premiums can be linked to Congress’s failure to extend the premium tax credits associated with the Affordable Care Act (ACA). In certain areas, premium increases have seen hikes of up to 150%. The guaranteed coverage for preexisting conditions under the ACA means many families feel trapped in the current insurance landscape, unable to forgo health coverage—even if that means facing premiums exceeding $50,000 annually.

Wright stresses the dire consequences for those requiring expensive treatments, such as individuals with autoimmune disorders who may depend on medications costing $6,000 per month. The ongoing surge in various health challenges, including mental health issues and widespread cancer diagnoses, places an added burden on those seeking coverage in this environment.

Personal Accounts of Insurance Challenges

Caroline Leonardo, a small business owner from Edwards, shares her experience with rising costs. Last year, she and her husband paid $1,000 monthly for health insurance covering her family. However, without the ACA tax credits this year, her premium skyrocketed to $2,400 a month, compelling them to reconsider their health plans.

Leonardo spent a considerable amount of time searching for alternative options, eventually settling on a policy that claimed to offer reduced premiums. However, she faced further frustration when the company refused to provide an official written plan and made it challenging to cancel. “There are dishonest entities out there trying to take advantage of people at this vulnerable time,” she stated. Ultimately, she returned to her previous provider, Anthem, facing a 140% increase in premiums after all her efforts.

Despite finding her means of coverage stifled, she feels cornered. “We need insurance in case of unforeseen health issues—especially given my history as a cancer survivor,” she added.

Economic Ramifications for the Community

Wright warns of the potential ripple effects on the local economy due to increased health insurance costs. For instance, a family of four with health insurance premiums swallowing $44,000 of their gross annual income (about $130,000) will inevitably affect local businesses. “If costs keep rising, service providers like hairstylists and electricians may have to increase their rates to meet their overhead,” she explained.

Younger, healthier populations may opt to forego insurance altogether, risking substantial hospital bills for unforeseen medical events. Wright’s clientele, however, are not willing to gamble, recognizing the precariousness of their health situations.

The Urgent Need for Solutions

As health insurance premiums begin to resemble monthly mortgage payments, many individuals working as independent contractors or small business owners are facing unsustainable costs. This substantial rise threatens to force people into tough decisions regarding basic necessities like housing, food, and health insurance.

Mannat Singh, executive director of the Colorado Consumer Health Initiative, emphasized the urgency of the situation: "People are now compelled to make choices between rent or their health insurance premium, potentially leading to severe financial strain if they require medical attention without coverage."

Preventative Care and Health System Preparedness

Will Cook, President and CEO of Vail Health, noted that the healthcare system is preparing for an influx of uninsured patients. He affirmed the importance of preventive healthcare, advocating for regular check-ups that allow individuals to catch potential health issues early. However, he also pointed out the financial stress on health systems when reimbursement rates fall insufficiently to cover rising costs.

As the situation evolves, Connect for Health Colorado remains a critical resource, offering financial assistance to many Coloradans—approximately 65% of customers qualify for aid. Individuals interested in enrolling can visit the Connect for Health Colorado website before the January 15 deadline.

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