Colorado says 2,100 health plans were canceled in last two months

The Colorado Division of Insurance has reported that there were about 2,100 health-plan cancellations in the state over the past two months, bringing this year’s total to more than 6,150.

The division reported the figures for June 15-Aug. 15 to Senate Minority Leader Bill Cadman last week. Senate Republicans have requested monthly on the numbers.

Since 2013, there have been about 340,000 policy cancelations in Colorado. Many customers received notices last fall as the Affordable Care Act was rolling out. Most of those with canceled policies received early renewal offers.

Policies that did not meet the act’s minimum standards were canceled. Other cancellations were the result of business decisions by the insurers as part of normal operations. The insurance division did not track cancelation numbers in the same way before the act.

Opponents of the Affordable Care Act cite the cancelations as proof that it is hurting consumers more than helping.

The insurance division and the Colorado Association of Health Plans say cancellation figures, without more context, reveal little.

“This doesn’t mean these are people without insurance,” division spokesman Vince Plymell said Thursday. “They have a lot more options for insurance under the act.”

It’s misleading to equate cancellation numbers with Coloradans losing coverage, said CAHP executive director Ben Price.

“The number of uninsured in Colorado has dropped,” Price said.

Of the 6,153 canceled plans, Price said, 2,293 were canceled because two carriers left the individual market in Colorado. Another 1,007 were attributed to a change in the large-group market, possibly with some large employer that switched carriers.

Insured individuals whose policies were canceled were offered alternatives, he said, and it isn’t yet known whether the coverage, likely more comprehensive, costs them significantly more on average, especially when tax credits are factored.

Electa Draper: 303-954-1276, edraper@denverpost.com or twitter.com/electadraper