CT – State Insurers Request Rate Increases on Individual and Group Plans
May 2017 ~
Health insurers in Connecticut have submitted rate increase requests for individual and small group plans in 2018. A total of 10 health insurance companies have requested increases ranging from 3.6% to 33.8% for 14 filings on plans that provide coverage to approximately 270,000 people in the state.
The insurers note in the filings that the request for an increase in premiums are in part due to the cost of prescription drugs, the 13.4% increase in the cost of medical care and the increased demand for medical services, a deteriorating claims risk pool experience and the return of the federal health insurance tax, which accounts for 2-3% of the premium increase.
According to Insurance Commissioner Katharine L. Wade, “Carriers have filed to take into consideration the perceived lack of strong enforcement of the individual mandate, the lack of stability of the risk adjustment mechanism and the evolving participation of carriers in the market.”
The proposed rate increases cover plans sold on and off the state’s health insurance exchange, Access Health CT. ConnectiCare Benefits Inc., HPHC Insurance Co., Harvard Pilgrim Health Care of Connecticut, Anthem, Oxford and UnitedHealthcare all submitted rate requests.
UnitedHealthcare proposed the lowest increase of 3.6%. ConnectiCare, whose four plans combined cover more than 85,600 people in both individual and small group policies, proposed a range of increases from 8.8% to 26.3%. The remaining of the insurers’ proposals are increases of 10% or higher.
“In the 2018 rates we are seeing claims experience that reflects increased medical and prescription drug costs along with higher utilization as well as uncertainty in the marketplace,” Wade continues, “I will continue to work across the Administration and with our Congressional delegation to advocate for market stability for 2018 and beyond to protect Connecticut consumers.”
Insurers have been given until May 15 to make adjustments and public hearings will held on June 14.
Source(s): Healthcare Finance; Modern Healthcare; New Haven Register; The CT Mirror; Connecticut Insurance Department;