The Connecticut Department of Insurance released a first look at how much health care plans will cost on the state”™s health insurance exchange, Access Health CT.
A part of the Affordable Care Act, the exchange is an open marketplace for individuals and employers to shop for health care plans beginning Oct. 1.
Depending on the level of coverage, initial premiums for individual policies range from $215 to $347 per month. For employers with one to 50 employees, monthly premiums range from $271 to $435.
Phil Boyle, an Access Health CT business outreach manager, said the long-awaited rates were actually lower than he expected, given the way rates have increased in the last few years.
“I was pleasantly surprised, quite frankly,” said Boyle, a former insurance broker. “It”™s not lower than the market would bear. But the state DOI and actuaries did a great job analyzing the rates and holding the insurance companies feet to the fire to stay in check.”
To help pay for the premiums, federal subsidies will be offered to individuals earning up to $44,680, or families of four earning as much as $94,200. And for small businesses, employers with less than 25 employees will be eligible for tax credits to cover up to 50 percent of the cost. Additionally, all small business owners will be able to write off a portion of their health care plan expenses in their taxes, Boyle said.
Businesses with more than 50 employees however, will be required to offer employees health care, or will face a $2,000 penalty per employee. If an employee at a large company receives a tax subsidy to purchase a plan off the exchange, the employer will face a $3,000 fine per employee with a subsidy.
A main goal of the Affordable Care Act is to increase the affordability of health care. But Boyle said he believes it will take time for consumers to see additional health care savings. For now, insurance companies are still “wrapping their arms” around the new regulations, Boyle said.
Insurance companies set to participate in the exchange include ConnectiCare Benefits Inc., Anthem Health Plans Inc., HealthyCT Inc. and United Healthcare Insurance Co.
Aetna Life Insurance Co. withdrew its rate filing Aug. 2 after an agreement couldn”™t be reached between the company and the insurance department, which said Aetna”™s rate was too expensive. Similar to changes the department made on other companies”™ rates, department officials wanted Aetna to remove its risk adjustment and lower expected service increases to 8.5 percent from 10 percent.
Boyle said it was very surprising to see Aetna drop out of the exchange at the last minute. The company was one of the first supporters of the Affordable Care Act and officials were attending regular meetings at the exchange.
With the withdrawal, Lt. Gov. Nancy Wyman said the decision would not affect the state”™s overall goal of offering affordable health care plans.
“The bottom line is that this is a business decision by Aetna that changes nothing for Connecticut consumers and businesses,” Wyman said in a release. “People will still be able to choose from a very comprehensive range of quality, affordable coverage options.”
