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Posted by on May 22, 2014 in Healthcare Reform, State of Colorado

DOI to Seek Shift on Geographic Rating Areas for 2015

DOI to Seek Shift on Geographic Rating Areas for 2015

The Colorado Division of Insurance (DOI) announced it will ask the federal government for approval to change Colorado’s geographic rating areas for health insurance for 2015.

Geographic rating areas are geographical units made up of metropolitan statistical areas (MSAs), counties or three-digit zip codes, which are used by insurance carriers to price premiums.

The DOI seeks to reduce the number of rating areas from 11 to nine, combining four rural areas into two larger rating areas, while retaining the seven urban (or metropolitan statistical areas, or MSAs).  Such a change will require approval from the U.S. Department of Health and Human Services.

The DOI received 306 comments of which 138 addressed the rating area options.  Of those, 117 were supportive of the nine rating areas structure.

The DOI will formally request approval from the Department of Health and Human Services to change Colorado’s rating area structure.  Due to this change, the DOI also will extend its deadline for insurance carriers to provide plans and rates for 2015 from May 15 to June 6, providing time for insurance carriers to adjust to the new areas.


DORA Press Release, May 9, 2014