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Colorado Employers Face Health Insurance Premium Hikes in 2025

by Celia

Rate hikes lag behind general inflation but are inevitable in the coming year.

DENVERHealth insurance premiums for Colorado employers are expected to rise significantly in 2025, industry experts say, as providers and insurance carriers grapple with the financial fallout from the COVID-19 pandemic and rising healthcare costs.

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Courtney Hutchison, Colorado market president for the MJ Companies, explains the situation by likening it to asking for a raise after years of stagnation. “If you haven’t received a raise in a decade, you’re going to ask for a pretty big one, because it might be another decade before you get the next one,” Hutchison said, drawing a parallel to the ongoing renegotiations between healthcare providers and insurers.

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Recent contract negotiations, such as the one that stalled in September between HCA HealthOne and United Healthcare, are a sign of the pressures mounting on the healthcare industry. These negotiations often go unnoticed by the public, but they are a critical part of the broader financial strain that many healthcare organizations are facing.

In many cases, health systems enter into long-term agreements with insurers that can last for years, sometimes even decades. According to Hutchison, these lengthy contracts are now being renegotiated to address the financial losses sustained during the pandemic and to secure more favorable terms for the future.

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Experts note that these multiyear contract terms are one reason medical cost increases tend to lag behind general inflation. However, with inflationary pressures continuing to impact the industry, Colorado employers can expect to see higher health insurance premiums during the upcoming open enrollment season.

As businesses brace for the inevitable cost increases, they may find themselves adjusting their budgets and preparing for the ripple effects of higher premiums in 2025.

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