CO| Colorado Division of Insurance has issued Amended Bulletin B-4.121 and outlines required calculations for medical inflation trends used in determining premium rate reductions for the Colorado Option Standardized Health Benefit Plans. Carriers in the individual and small group markets must use the geometric average change over three years in the medical care index for Denver-Aurora-Lakewood from the Bureau of Labor Statistics Consumer Price Index, with the latest three-year average set at 2.20% for the 2027 benefit year. The methodology is now prescribed for annual updates, requiring carriers to apply this calculation to meet compliance for premium rate reductions in Colorado Option plans.
Key Points:
- Carriers must use the three-year geometric average change in the local CPI medical care index to calculate medical inflation trend adjustments for premium reductions.
- The latest published three-year average for the Denver-Aurora-Lakewood medical care CPI is 2.20%, to be used for calculating the 2027 benefit year adjustment.
- The bulletin formally details the methodology, source data, and timing for updates to ensure accurate and compliant rate reduction calculations for standardized plans in Colorado.