Colorado Efforts to Help with Health Insurance Rates in 2026
Colorado lawmakers have taken major steps to cushion the impact of rising health insurance premiums as enhanced federal tax credits are set to expire at the end of 2025. Early projections suggested premiums across the state could spike by as much as 28% next year. In response, the state passed HB25B, establishing new programs designed to lower costs for both insurers and consumers.
Reinsurance Program to Stabilize Premiums
The first major component of HB25B allocates $50 million in state funds toward a reinsurance program. This program helps insurance carriers cover large medical claims, allowing them to reduce the amount of financial risk they carry. By offsetting some of these high-cost claims, insurers can offer lower premiums to consumers.
State analysts estimate that this reinsurance effort could reduce the projected premium increase from 28% to roughly 16% — a significant improvement for Coloradans facing the loss of federal subsidies.
Premium Assistance for Consumers (CPA)
The second piece of the bill focuses directly on consumer relief. Starting in 2026, individuals who qualify for premium tax credits under the Affordable Care Act will receive an additional $80 per month in premium savings, plus $29 per month for each additional family member.
This means a family of four could save nearly $170 per month on top of their existing federal subsidy. For example, someone paying around $100 per month today could have seen their rate jump to $200 or more next year — but with the new premium assistance, that premium may be closer to $120.
Changes to Cost-Sharing Reductions (CSRs)
One trade-off in the new plan is the elimination of the state-funded cost-sharing reduction (CSR) program, which provided additional help to low-income Coloradans on silver-tier plans. Moving forward, CSR assistance will revert to the federal level only.
Even with this change, the combination of the reinsurance fund and premium assistance measures represent a strong effort by Colorado lawmakers to make 2026 coverage more affordable during a challenging transition period.
What This Means for You
These policy changes are expected to provide meaningful relief for those who qualify for subsidies — but many Coloradans earning above 400% of the federal poverty level will lose access to premium tax credits entirely. That’s where independent brokers like White Hat Insurance Advisors can help.
Our team works with both on-exchange and private plan options to find the most affordable coverage possible. Whether you qualify for a tax credit or not, we can help you compare plans, understand how these changes affect your premiums, and find the best solution for your household.