CO| The amended Bulletin No. B-4.121 provides guidance to carriers in Colorado regarding the medical inflation trend calculation for the premium rate reduction requirements of the Colorado Option Standardized Health Benefit Plans. Starting in the 2023 benefit year, carriers in the individual and small group markets are required to offer these plans at reduced premiums compared to 2021 rates. The bulletin defines medical inflation as the annual percentage change in the medical care index component of the Consumer Price Index for Denver-Aurora-Lakewood, Colorado, based on a three-year average.
For the 2025 Benefit Year, the medical inflation trend adjustment in the premium rate reduction methodology is calculated using a 3-year average of 3.70%. The resulting adjustment factor, rounded to the nearest thousandth, is 1.1993. This calculation is based on data from the Bureau of Labor Statistics and uses a geometric average of the annual percentage increase for the last three years of the Medical Care index. The bulletin also includes an appendix detailing the derivation of the medical inflation adjustment, showing the 12-month percentage changes for May 2022, 2023, and 2024. Revised December 10, 2024.