Colorado has become the latest state to face upheaval in its individual health insurance market, as major insurers announce plans to abandon the state’s Affordable Care Act (ACA) Marketplace.
Anthem Blue Cross Blue Shield and Rocky Mountain Health Plans are both set to withdraw in 2026, forcing nearly 96,000 Coloradans—about a third of the state’s individual market—to search for new coverage. The departures are raising concerns about rising premiums, dwindling choices, and the stability of coverage for consumers across Colorado.
This crisis is not unique to Colorado. Wyoming, for example, is already grappling with the fallout after Mountain Health Co-Op this week announced it will cease coverage for the state’s residents at the end of this year. The move leaves approximately 8,000 individuals needing to find new plans and highlights broader challenges facing ACA markets across the country as costs climb and federal support wanes.
In Colorado, officials are scrambling to attract new insurers and prevent a scenario where consumers have little or no choice. The state’s Insurance Commissioner Michael Conway said the seriousness of the situation should not be under-played.
“I don’t know how we can ring alarm bells any louder, Coloradans need support,” Conway said in a statement.
“We need our elected leaders at the General Assembly and federal level to help. We will do everything possible to stabilize the market, but without that assistance, hardworking people are going to receive devastatingly high rate increases and more than a hundred thousand people will lose coverage as a result,” he added.
The loss of major insurers is especially significant in rural areas of both states, where coverage options are already limited. Without intervention, some counties could be left with a single insurer or none at all.
Rocky Mountain HMO filed to withdraw plans from certain counties. It will still provide plans in the individual market, but it will no longer offer 20 plans across 7 counties. All plans being removed are in rating area 3, which is the Denver Metro area. The discontinuances will affect 26,000 Coloradans.
HMO Colorado filed to both discontinue plans and withdraw plans from certain counties. Their discontinuance filing announced plans to remove 21 plans impacting 11 counties and 32,000 members. In addition, it plans to no longer offer 41 plans in certain counties, impacting 37,000 members. These changes will result in ending coverage for almost 70,000 members (which is two thirds of its current enrollment).
Industry analysts warn that these developments could be a harbinger for similar instability elsewhere. The dual challenges of rising costs and declining federal support threaten the ACA’s promise of affordable and accessible coverage.
State officials in Wyoming are pledging to help consumers navigate the transition, while some residents are beginning to look beyond traditional insurance to alternatives such as healthshare programs, which, while not technically insurance, offer a different approach to managing healthcare costs .
The unfolding crises in Colorado and Wyoming underscore the fragility of the individual health insurance market and raise pressing questions about the long-term viability of the ACA’s safety net for those who don’t receive insurance through work or government programs. With open enrollment approaching, the search for stable, affordable coverage is more urgent than ever .