Small Employers on Colorado’s Western Slope Face Up to 15% Health Insurance Hike: What You Need to Know

Small employers in Colorado are facing a potential health insurance premium increase of about 13.6% in 2026, according to the Colorado Division of Insurance. For those in the Western Slope, the rise could get even steeper, nearing 15%.

Colorado Insurance Commissioner Michael Conway shared concerns about this. He emphasized that many employers will have tough choices ahead about how to manage these rising costs for their employees. With several insurance options available, he stressed the importance of exploring affordable plans.

For 2026, five insurance providers—Anthem, Kaiser Foundation of Colorado, United Healthcare, and others—will offer a total of 383 plans for small groups. Interestingly, this is down by one option from last year as Anthem’s HMO will not be part of the offerings.

The proposed rate hikes vary among providers. United Healthcare Insurance Company is asking for a notable 16.7% increase, while Kaiser Permanente is looking at just 3.6%. The changes reflect a broader trend, as health insurance rates overall are rising sharply across the state.

Notably, the definition of “small employers” is changing in 2026. Previously, it included companies with 1 to 100 employees; now it will only cover those with 1 to 50 employees. This adjustment may add an estimated 0.8% increase in premiums.

Currently, around 172,000 Coloradans depend on small group plans for their health coverage. These increases will disproportionately impact areas like the Western Slope, which includes several counties where proposed premiums are higher.

An interesting comparison highlights that the proposed increases in the small group market are still significantly lower than what’s expected in the individual market, where rates could jump by over 28%. For instance, the average increase in the Western region of Colorado could hit around 38.8%.

This pattern of rising costs mirrors a national trend. According to a recent survey from the Kaiser Family Foundation, nearly half of all small businesses reported health insurance costs as a major concern, reflecting similar pressures felt in Colorado.

The Colorado Division of Insurance is currently accepting public comments on this topic until August 12 and will hold a meeting to discuss the proposed rates on August 1, 2025.

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