Short-Term Health Insurance in Colorado: 2027 Rules
A short-term health plan in Colorado is a temporary policy meant to fill a gap of weeks or a few months, not a full replacement for major medical coverage. It can exclude pre-existing conditions, cap what it pays and decline applicants, and Colorado adds its own rules on top of the federal limits. With Colorado Marketplace premiums rising 10% to 12.8% on average for 2027, more people are looking at short-term plans, so it pays to know what they leave out. I don't sell short-term plans; this page explains how they work in Colorado and the year-round options I do offer.
Private health insurance in Colorado
Most people I help in Colorado end up on a private plan, not a Marketplace plan. Private, medically underwritten health insurance is priced on your age, zip code and health instead of your income, so a strong year never raises your premium and there is no tax credit to pay back in April.
Why people leave the Marketplace
- Premiums keep climbing. Colorado Marketplace premiums are rising 10% to 12.8% on average for 2027.
- The subsidy cliff. Above 400 percent of the poverty level ($63,840 for one person, $132,000 for a family of four) you pay full price.
- Surprise tax bills. Underestimate your income and you repay the tax credit in April.
- Narrow networks. Many plans are local HMOs or EPOs that need referrals and cover little outside the area.
- High out-of-pocket costs. 2027 out-of-pocket maximums reach $12,000 per person and $24,000 per family.
- One window a year. Outside open enrollment you need a qualifying life event to enroll or switch.
What a private plan does differently
- Start any month. If approved, coverage can begin the first of next month, with no wait for open enrollment.
- Networks that travel. Many private plans use national PPO networks, which can give you in-network doctors outside Colorado too. Networks vary by plan.
- Can cost less than full-price Marketplace plans for some healthy applicants above the subsidy line.
- Accident coverage the Marketplace does not offer. A private plan can be paired with accident coverage, a separate policy. What it includes varies by plan.
- Approval is based on health. You answer health questions, and acceptance is not guaranteed.
With a significant health condition, or income low enough for a large tax credit, a Marketplace plan can be the better fit, and I will tell you if it is. Either way you see both side by side.
Private plans are not ACA Marketplace plans. Benefits, exclusions and pre-existing condition rules differ by plan and by state, so review the plan details before you enroll.
Get a private plan quoteLearn more: coverage not based on income · how underwriting works · private vs Obamacare · PPO plans for individuals · switching from the Marketplace
Short-term plan rules in Colorado
Colorado law makes short-term coverage a narrow product. Under C.R.S. 10-16-102(60), a short-term plan may last no more than six months and cannot be renewed, and Colorado Division of Insurance rules adopted in 2019 (Regulation 4-2-59) added requirements such as covering essential health benefits and meeting a higher loss ratio. Faced with those terms, insurers stopped marketing these plans, and consumer trackers report none sold in the state today. Federal changes don't reopen the market: the 2024 federal limit, which Washington said in August 2025 it would not prioritize enforcing pending new rulemaking, is looser than Colorado law anyway, and the stricter state standard controls as of late 2026. Check with the Division of Insurance before buying anything pitched as short-term coverage.
When a short-term plan fits in Colorado, and what to use instead
Because no short-term plans are currently marketed in Colorado, a ski-resort employee whose winter job ends in April or a Denver tech worker between offers needs a different bridge. Health care sharing arrangements or discount cards pitched as a stand-in deserve a hard look: they aren't insurance, can exclude prior conditions, and qualify for no tax credits. Connect for Health Colorado, the state's own exchange, gives you 60 days after losing job-based coverage to enroll, and Colorado residents shop there rather than on HealthCare.gov. Frank also offers year-round medically underwritten private plans for healthy applicants; if approved, one can begin the first of a month, without waiting for open enrollment.
The Colorado individual market
Colorado buyers use Connect for Health Colorado, the state's own exchange, which sets its own calendar and runs state programs on top of federal credits. Final 2027 individual rates rise about 10 percent on average, held down by a state reinsurance program that lowers premiums by roughly 17 percent statewide and by the Colorado Option, which requires a standardized plan in every county. Colorado also funds premium help for many households that would otherwise face a steeper 2027 increase. State continuation lasts 18 months, longer than in most states, and short-term plans are limited to six nonrenewable months. Mountain counties have historically had higher premiums than the Front Range, so where you live in Colorado matters a great deal.
Other Colorado rules to know
- Leaving a small employer: Colorado requires insured group plans to offer 18 months of continuation after at least six months of coverage, with the employer giving written notice within 10 days and the employee electing within 30 days.
- Short-term plans: Colorado law limits short-term plans to six months, nonrenewable, and few if any insurers sell them in the state.
- Where to enroll: Colorado uses its own exchange, Connect for Health Colorado. Connect for Health Colorado sets its own open enrollment dates; check its site for 2027 deadlines. Private, medically underwritten plans can start the first of any month if approved.
- 2027 rates: individual plans 10% to 12.8% on average, small-group plans about 14%. See the Colorado 2027 rate page.
What a short-term plan is
Short-term limited-duration insurance is temporary coverage outside the ACA rules. It can ask health questions, turn applicants down, exclude conditions you already have and leave out benefits such as maternity care, mental health care or prescriptions. It is not Marketplace coverage, so no subsidy applies to it.
Why the time limit matters
A 2024 federal rule caps short-term plans at three months, or four with renewals. In August 2025 federal regulators said they would not prioritize enforcing that cap, so the real limit now depends on your state, from a few months to as long as three years. However long it lasts, when the plan ends you are not guaranteed a new one, and losing a short-term plan does not open a Marketplace enrollment window.
The two options that last all year
A Marketplace plan accepts everyone during open enrollment or within 60 days of losing other coverage. A medically underwritten private plan is year-round coverage priced on age, ZIP code and health; it is not a Marketplace plan, approval depends on your health answers, benefits vary by plan, and if approved it can start the first of a month. For most people who need more than a short bridge, one of these two is the better fit.
For 2027 the Marketplace credit stops at 400 percent of the poverty level: $63,840 for one person, $86,560 for two and $132,000 for a family of four. The out-of-pocket maximum for 2027 Marketplace plans is $12,000 for one person and $24,000 for a family. The full guide covers the rest.
Compare Colorado plans
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Colorado questions
Where do Colorado residents enroll in 2027 coverage?
Colorado uses its own exchange, Connect for Health Colorado. Connect for Health Colorado sets its own open enrollment dates; check its site for 2027 deadlines.
What continuation rights does Colorado give after leaving a small employer?
Colorado requires insured group plans to offer 18 months of continuation after at least six months of coverage, with the employer giving written notice within 10 days and the employee electing within 30 days.
How much are Colorado premiums rising for 2027?
Individual-market premiums are set to rise 10% to 12.8% on average, and small-group plans about 14%.
Is a short-term plan cheaper than a Marketplace plan?
The premium often is, but the plan covers less, can exclude pre-existing conditions and ends after a few months. Compare it with what you would actually pay for care under each option.
Can I get a short-term plan after open enrollment ends?
Where your state allows them, yes, but they are temporary. A year-round private plan can also be applied for in any month and, if approved, can start the first of a month.
Sources: www.healthinsurance.org, doi.colorado.gov, connectforhealthco.com, www.cms.gov. Facts checked October 2026. See all Colorado health insurance rules.
Short-term plans in other states
Written by Frank Caballero, licensed health insurance agent in Colorado and 30 other states, NPN 21032307.