On November 4, the Colorado Division of Insurance (DOI) released a report contending that rising health care costs, not the national health care reform law, are the main factor contributing to large health insurance premium increases.  The DOI found that meeting health reform’s requirements caused increases of up to 5 percent in the small group and 1.2 percent in the large group market. 

From the report:

Speculation continues to swirl about the effects of Federal Health Care Reform on health insurance premiums, so Colorado Insurance Commissioner Marcy Morrison decided to get answers and set the record straight.

“It’s a hot issue for many people, and we figured the best way to address the rumors was to publish the facts, so people could see for themselves what is driving the price of health insurance,” said Marcy Morrison, Commissioner of Insurance.

The Division of Insurance is in the process of reviewing rates submitted by hundreds of health carriers. Although carriers may submit their rates for approval at any time during the year, the fall months are a peak time, due to the high number of policies which have a January 1 renewal date.

“What we found isn’t surprising: health insurance premiums continue to rise,” Morrison said. “But what may be eye-opening for some people is that federal health reforms have contributed from zero to a maximum of 5 percent of those increases. It’s not the primary cause for increasing rates.”

Full Report: Integrated Medicaid and State Agency Mental Health and Substance Abuse Data Analysis and Technical Assistance (PDF | 26 KB)

Colorado Division of Insurance. (2010). Integrated Medicaid and state agency mental health and substance abuse data analysis and technical assistance.