Retired state employee D. Grover planned for a future when she’d need to spend more on health care, but not for her monthly insurance costs to more than triple when the calendar flipped from December to January. Grover, of Cañon City, buys a Medicare Advantage plan through the Colorado Public Employees’ Retirement Association .
Earlier this month, she received notice that the cost to maintain her current insurance would rise in 2025 from $71.50 each month to $268.50, a 275% price hike even after a subsidy.
That level of increase is difficult to manage for someone who lives on a fixed income and needs to hire household help because of a health condition, she said. “I don’t know how long I can stretch it,” Grover said of the money she has saved. About 71,000 people statewide buy their health insurance through PERACare , and roughly 70% of them face a steep increase in premiums next year.
In 2025, premiums for the three PERACare options will increase to: The subsidies gradually increase, depending on how long someone worked in state government. They max out after 20 years of service. When PERA added the two United plans in 2022, they locked in rates for three years, said Patrick von Keyserling, senior director of communications for the organization.
Now, that agreement is ending, and the 2025 rates reflect multiple years’ worth of increasing medical costs, he said. “We’re aware that premium increases are not welcome news for our retirees,” he said in a statem.
