Health insurance premiums to rise.
There’s good news and bad news for Colorado small business owners next year: Part of the cost of workers’ compensation will drop for average employers, while individual and small group health insurance premiums will see an average increase.
The Colorado Division of Insurance approved a cut of 1.9 percent for the average “loss costs” part of workers’ compensation premiums for 2016. Still, depending on other factors, employers could see their overall workers’ compensation costs rise or fall.
“As with last year, this positive development comes from the work by employers and employees to better manage workers’ compensation costs,” said Commissioner of Insurance Marguerite Salazar in a statement.
The loss cost of the employer’s workers’ compensation obligation is the average cost of an injured worker’s lost wages and medical care payments.
On the other hand, health insurance premiums will increase an average of 3.17 percent for small group plans (2 to 99 employees), the state’s Division of Insurance announced. That figure reflects the rising costs of healthcare, though individual businesses will see varied rates.
