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Estimating the Individual Market Premium Impacts of the Colorado Option

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Abstract:
The Affordable Care Act (ACA) has faced several challenges, including the elimination of the individual mandate, phase-out of reinsurance programs, and insurer exits, all of which threaten the stability of the individual health insurance market. To address these issues, states like Colorado have introduced public option plans to lower premiums. This brief examines the impact of the "Colorado Option" on premiums for the lowest- and second-lowest-cost silver plans. We used 2020-2024 data from the Centers for Medicare and Medicaid Services Health Insurance Exchange Public Use Files and a difference-in-differences approach to compare premium trends in Colorado with comparison states. We found that the Colorado Option was associated with a statistically-significant $101 reduction in monthly premiums per enrollee for these plans. While promising, future research should explore regional variations and broader market dynamics, including insurer behavior and enrollment patterns.

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Citation

Roslyn Murray, and Christopher Whaley, "Estimating the Individual Market Premium Impacts of the Colorado Option" (2025). Center for Advancing Health Policy through Research (CAHPR) Digital Collection. Brown Digital Repository. Brown University Library. https://doi.org/10.26300/87w6-9e42

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