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Assessing Individual Market Hospital Outpatient Prices in the Context of the Colorado Option

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Abstract:
In 2023, Colorado launched the Colorado Option, a standardized health insurance plan with regulatory tools to enforce premium reductions, including state intervention in hospital payment negotiations. This brief examines whether these regulatory tools influenced hospital outpatient prices in the individual market. Using 2020–2024 claims data for four common outpatient procedures, we found that prices at hospitals targeted for rate reductions ("named hospitals") declined by approximately 10% in non-Colorado Option plans. These findings suggest the Colorado Option may be contributing to modest price reductions, with potential spillover effects across the individual market.

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Citation

Roslyn Murray, and Christopher Whaley, "Assessing Individual Market Hospital Outpatient Prices in the Context of the Colorado Option" (2025). Center for Advancing Health Policy through Research (CAHPR) Digital Collection. Brown Digital Repository. Brown University Library. https://doi.org/10.26300/9jf5-ds57

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