The Division would like to provide notice that the Commissioner has adopted the following new bulletin:
The purpose of this bulletin is to clarify the Division’s position regarding the induced demand factor assumptions utilized by health insurance carriers offering Affordable Care Act (ACA)-compliant plans to account for differences in consumer behavior in pricing health benefit plans of different metal levels (e.g., bronze, silver, gold). It is the position of the Colorado Division of Insurance that, in the individual and small group markets, consumers who are enrolled in plans with similar actuarial values will exhibit similar consumer behavior regardless of the carrier who offers the plan. Therefore, for plan years beginning in 2022, the Division will only allow the use of the induced demand factors determined by a formula that is derived from induced demand factors established by Centers for Medicare and Medicaid Services and used in the Federal Risk Adjustment program.
This bulletin is intended to provide guidance to all carriers offering individual and small group health benefit plans in the State of Colorado.
This bulletin, and other Division bulletins, can be found on the Division's Bulletins page.