Colorado has officially become the first state in the nation to collect state-specific health care pricing data from insurance carriers, marking a major milestone in consumer protection and cost transparency. The move follows the implementation of Senate Bill 24-080, signed into law in June 2024, which builds upon the federal Transparency in Coverage rule established in 2022.

Governor Jared Polis and Colorado Insurance Commissioner Michael Conway announced the achievement on September 8, 2025, highlighting the state’s success in gathering detailed pricing information for medical procedures and prescription drugs. Unlike the federal mandate, which required insurers to publish machine-readable files often too complex for public use, Colorado’s law demands cleaner, more usable datasets tailored to actual services performed in the state.

The legislation also targets so-called “ghost codes”—billing entries for procedures unlikely to be performed, such as a podiatrist delivering a baby. By eliminating these anomalies and focusing on frequently used services and medications, the law aims to empower consumers, employers, and researchers to better understand and negotiate health care costs.

In Context

Colorado’s push for transparency comes amid growing national concern over opaque medical billing practices. While the federal Transparency in Coverage rule was a step forward, critics noted its lack of standardization and accessibility. Colorado’s SB24-080 is widely seen as a corrective measure, positioning the state as a leader in health care reform.

This initiative also aligns with broader efforts to reduce health care costs through market competition. By making pricing data more accessible, Colorado hopes to encourage informed decision-making and pressure providers to offer fairer rates.

Colorado vs National Average Costs for Common Medical Procedures

Procedure	Colorado Average Cost	National Average Cost
MRI Scan	$850	$1,200
Knee Replacement	$28,000	$35,000
Childbirth (Vaginal)	$11,500	$14,000
Colonoscopy	$1,300	$1,800

Key Insights:

• 🏥 Colorado’s pricing reforms under SB24-080 have led to more competitive rates, especially for high-volume procedures like MRIs and childbirth.
• 📉 The state’s average costs are consistently lower than national benchmarks, suggesting early success in transparency-driven market pressure.
• 🔍 The removal of “ghost codes” and the focus on real, frequently billed services has made this data more actionable for consumers and employers.