Connecticut Attorney General William Tong has called on the state”™s insurance commissioner to reject the double-digit rate increases sought by the insurance companies Anthem, Cigna and ConnectiCare.
In a letter to Commissioner Andrew N. Mais, Tong insisted that the companies failed to provide adequate reasoning on why they are eager to enact significant rate hikes.
“The burden of proof falls on the insurers to justify their rates””to provide transparent, factually-supported actuarial analysis,” Tong wrote. “In at least the case of Cigna”™s 14.9% increase in the small group market, Anthem”™s 9.8% increase in the individual group and 14.9% increase in the small group market, and ConnectiCare”™s 17.5% increase in the individual market, the insurers have failed to meet that burden and their requests must be rejected. Should any increase or modification be granted, the burden is on these companies to immediately amend their submissions with factually-supported evidence before the Department takes any further action.”
Tong added the companies sought to justify their proposed hikes with dubious data.
“Between 2016 and 2022, rates sought by insurers and approved by the Connecticut Insurance Department far outstripped consumer inflationary trends,” he continued. “These inflated costs are excessive and unjustified and unaffordable for too many Connecticut families, individuals, and businesses. When viewed though a historic lens, it seems equally clear that these rate increases are unsustainable and are a likely cause of the flight that is occurring from the fully insured market.”
Tong also stated his office was exploring potential legislative proposals to ban insurers from applying trend data in excess of industry accepted or government-developed benchmarks, complaining that the three companies “make sweeping statements about their annual trend but do not provide the data to justify their assumptions. The Insurance Department can and must thoroughly scrutinize these applications and be a voice for consumers in a system that is making health insurance less accessible every year.”
