Colorado group health insurance
Colorado was one of four states that kept a small group market of up to 100 employees. Senate Bill 24-073 changed that, and the Colorado Division of Insurance announced that the small employer definition changes with the 2026 plan year rates. Employers between 51 and 100 employees should check with a broker how they are now rated.
Group plans are regulated by the Division of Insurance, and employers can buy through a broker directly from carriers or through Connect for Health Colorado, the state marketplace.
What Colorado employers should know
- The small employer definition is changing, which matters most to firms of 51 to 100.
- The Division of Insurance regulates insurers and reviews rates.
- Connect for Health Colorado runs the state marketplace.
- Small group rate requests for 2026 averaged double-digit increases.
- Front Range and mountain or Western Slope networks differ a lot.
- Brokers need a Colorado producer license with accident and health authority.
Colorado at a glance
| Item | Colorado |
|---|---|
| Small employer definition Changed by SB 24-073; ask a broker how you are counted | Changing |
| Average small group rate request, 2026 Division of Insurance, as requested by carriers | 13.6% |
| Regulator Insurers and rate review | Division of Insurance |
| State marketplace Individual and small business options | Connect for Health Colorado |
Sources: Colorado Division of Insurance announcement, SB 24-073, Connect for Health Colorado. Read October 28, 2026. Rate requests are averages across carriers and not the rate for your business. General information, not legal advice.
If you have 51 to 100 employees
Until the change, a Colorado employer with 60 or 90 employees bought small group cover, rated on age, area and tobacco under community-style rules. Groups that fall outside the new small employer definition move to the large group market, where carriers can take the group's own claims experience into account and plan designs are more flexible. For a young, healthy group that can mean lower rates; for a group with high claims it can mean a steeper renewal.
If your headcount is in that band, ask a broker to show your renewal both ways where possible, and to explain how your average employee count is measured. Level-funded and self-funded options also become more realistic at this size.
| Small employer definition change | Senate Bill 24-073 |
|---|---|
| Regulator and rate review | Colorado Division of Insurance |
| State marketplace | Connect for Health Colorado |
| Federal small business credit | IRS, via a SHOP plan |
General information, not legal advice. A licensed broker will confirm how the definition applies to your group.
Six questions for a Colorado broker
The usual list, with a Colorado question added.
Their license, in your state
A resident or non-resident producer license with accident and health authority wherever you have employees. You can check it on your state insurance department's site (the NAIC lists every department).
How they are paid
Commission from the carrier, a flat fee from you, or both. Federal rules require brokers to disclose expected pay of $1,000 or more for a group health plan in writing before you sign (DOL Field Assistance Bulletin 2021-03).
Which carriers they can quote
Brokers can only place cover with carriers that have appointed them. Ask which carriers and funding types they will take your group to, and whether any are left out.
The definition change
How the small employer definition change affects your group, and whether they can show small and large group options side by side if you are near the line.
What happens after you sign
Who handles enrollment, adding and removing employees, billing errors and claim problems during the year, and how quickly they reply.
Compliance help
Whether they help with ACA reporting, Section 125 premium-only plans, COBRA or state continuation notices and plan documents, or expect your payroll provider or attorney to do it.
A Colorado employer, small or growing past 50? Talk to a licensed broker in your state who works with groups your size.
Find a licensed brokerSetting up a Colorado group plan
Confirm your market
Check whether your headcount puts you in small or large group under the new definition.
Census and quotes
Ages, ZIP codes and cover tier; claims data if you are now large group.
Applications
Employer and employee forms and the first premium.
Renewals
Start early if the definition change moves your group.
Front Range, mountains and the Western Slope
Most Colorado employers are along the Front Range from Fort Collins to Pueblo, where carriers compete more. In mountain resort counties and on the Western Slope, choice is narrower and premiums have historically been among the highest in the state, partly because there are fewer hospitals and providers. If you have staff in Denver and in a resort town, ask a broker to check networks and rates for both before choosing.
Questions people ask
Is small group still up to 100 employees in Colorado?
Colorado changed its small employer definition through Senate Bill 24-073, and the Division of Insurance tied the change to 2026 plan year rates. Employers between 51 and 100 should ask a broker how they are now rated.
How much did Colorado small group rates go up for 2026?
The Division of Insurance reported average requested increases of 13.6% for the small group market for 2026. Your own renewal depends on your group, plan and area.
What is Connect for Health Colorado?
The state marketplace. Its small business page explains the options for employers.
Who regulates group health insurance in Colorado?
The Colorado Division of Insurance regulates fully insured plans and reviews rates. Self-funded plans are mostly governed by federal ERISA law.
Find a Colorado group health broker
Three short steps: where the business is, what you have now, and who to speak to. It takes about two minutes and asks nothing about anyone's health.
- Free for employers. The broker pays us a flat fee per introduction.
- One broker, named to you first, with their state license number.
- No advice from us. Plans, rates and tax questions go to the licensed broker.
We are a free matching service, not a broker or insurer, and we do not quote or recommend plans. We look for a licensed benefits broker who works with businesses like yours and tell you who it is; your enquiry goes to them only with your go-ahead.
Thanks, your enquiry is in.
- Within one business day we will email or call to tell you which licensed benefits broker we have found, with their license number.
- Your details reach that broker only if you say yes.
- The broker reviews your renewal or your options and talks you through them. Whether to work with them is your choice. No marketing from us, ever.