What Is the Colorado Option? A Plain-English Guide for 2027
The Colorado Option is a standardized ACA plan insurers must offer in Colorado. Here's what it covers, how to find one on Connect for Health Colorado, and when another plan may fit better.
The Colorado Option is a state-designed health plan that insurers must offer to Coloradans who buy their own coverage. Small employers can buy it too. Colorado Option plans have standardized benefits and state premium targets, and they never ask health questions. This guide explains how to find one and when another plan may fit better.
What is the Colorado Option?
The Colorado Option is a standardized health plan created by a 2021 Colorado law, House Bill 21-1232. Insurers must offer Colorado Option plans in every county where they sell individual plans. The Colorado Division of Insurance oversees the program and reviews each insurer's rates every year. The Colorado Option is not a government insurer. Private insurance companies sell and run these plans under state rules. Key facts:
- Created by: Colorado House Bill 21-1232
- Individual buyers: Coloradans who buy coverage outside an employer
- Employers: small employers with fewer than 50 employees
- Metal levels: Bronze, Silver, and Gold
- Not available: the Catastrophic level
- Oversight: the Colorado Division of Insurance
What does a Colorado Option plan cover?
A Colorado Option plan covers the same essential health benefits as other ACA plans and adds set costs for common care. Copays, deductibles, and out-of-pocket maximums match across insurers within each metal level. Connect for Health Colorado and the Division of Insurance list these standard features:
- Non-preventive primary care visits: $0
- Mental health and substance use disorder visits: $0
- Prenatal and postnatal visits: $0
- Diabetes self-management education: $0
- Certain diabetic supplies: $0
Colorado Option networks must also include certified nurse midwives and more community providers. Check the 2027 plan summary before you enroll, because details can differ by metal level.
How does the Colorado Option lower costs?
The Colorado Option lowers costs through premium targets and set benefit designs. State law required insurers to cut Colorado Option premiums by 15% over three years, compared with 2021 levels adjusted for medical inflation. The premium targets continue through the 2027 plan year. The Commissioner of Insurance enforces the targets through rate review and public hearings. Insurers that miss a target must explain why at a hearing. The Division of Insurance reported in 2026 that every Colorado county had a Colorado Option Silver plan at or below the county's average Silver premium. A lower average does not guarantee a lower price for you. Your age, county, income, and plan choice still set your actual premium.
Who can buy a Colorado Option plan?
Any Coloradan who can buy an individual plan can choose a Colorado Option plan. No health questions apply, because Colorado Option plans are ACA plans. Pre-existing conditions cannot block your enrollment. The normal enrollment calendar applies:
- Open Enrollment: November 1, 2026, through January 15, 2027
- January 1 coverage: choose a plan by December 15, 2026
- February 1 coverage: choose a plan from December 16 through January 15
- Outside Open Enrollment: a qualifying life event opens a Special Enrollment Period
Premium tax credits work the same way on Colorado Option plans as on other marketplace plans. Colorado Premium Assistance can add state help for eligible Connect for Health Colorado customers. See Colorado Open Enrollment 2027 for dates and changes.
How do you find a Colorado Option plan?
Colorado Option plans are easy to spot because the name appears in the plan title. The state's naming format is "[Insurance Company] Colorado Option [Metal Level]." Follow these steps on Connect for Health Colorado:
- Log in to your account, because the plan filter bar appears only after login
- Filter for Colorado Option plans
- Compare plans at one metal level
- Check your doctors and hospitals in each network
- Check your prescriptions on each drug list
- Compare the premium after any tax credit
Standard benefits make the comparison simpler. Plans at the same metal level share the same costs for care, so premium, network, and customer service decide most choices.
Is a Colorado Option plan better than other marketplace plans?
A Colorado Option plan is not automatically the best choice. Network, prescriptions, and total yearly cost still decide the right plan. The table compares Colorado Option plans with other marketplace plans.
| Feature | Colorado Option plan | Other marketplace plans |
|---|---|---|
| Benefit design | Standardized by the state | Set by each insurer |
| Premium | Subject to state reduction targets | Set by each insurer, reviewed by the state |
| Premium tax credits | Yes, based on income | Yes, based on income |
| Health questions | None | None |
| Network | Varies by insurer | Varies by insurer |
Use these decision rules to narrow your choice:
- Frequent primary care or counseling visits: start with a Colorado Option plan
- A specific doctor or hospital: choose by network first
- Regular prescriptions: compare drug lists before premiums
- Lowest monthly premium as your only goal: compare every Bronze plan in your county
How do Colorado Option plans compare with private plans?
Colorado Option plans and private plans follow different rules. Colorado Option plans accept everyone and cannot turn you down for a pre-existing condition. Private plans outside the marketplace ask health questions, so eligibility depends on your answers. Private plans may be available year-round, but they get no premium tax credits and may not carry the same protections as ACA plans. Depending on your health and situation, a private plan may cost less. If a private plan isn't the right fit, ACA plans can't turn you down because of a pre-existing condition. See ACA vs. private health insurance.
Frequently asked questions
Is the Colorado Option a government health plan?
The Colorado Option is not a government health plan. Private insurance companies sell and manage Colorado Option plans. State law sets the benefit design and premium targets, and the Colorado Division of Insurance enforces those rules. You still pay your premium to the insurer and use that insurer's provider network.
Can you use premium tax credits on a Colorado Option plan?
Premium tax credits apply to Colorado Option plans bought through Connect for Health Colorado. The credit amount depends on your income, household size, and local plan prices. Colorado Option Silver plans can also carry cost-sharing reductions for eligible lower-income enrollees, the same way other marketplace Silver plans do.
Can a small business offer the Colorado Option?
Small employers with fewer than 50 employees can offer Colorado Option plans. The Colorado Division of Insurance sets separate rules for the small group market. A business can compare these plans with other group plans and employee reimbursement arrangements before choosing a benefit for its team.
Get help comparing Colorado plans
A licensed broker based in Aurora can compare Colorado Option plans with every other option in your county. I'll check your doctors and prescriptions and show the likely yearly cost of each plan. My help is free, and your price is the same whether you enroll on your own or with me.