CT approves health insurance rate hikes that are much lower than what insurers wanted
The Connecticut Insurance Department (CID) has issued its final rulings on health insurance rate filings for the 2021 individual and small group markets ”“ each of them considerably lower than what the insurance firms had proposed.
The average increase for individual plans is 0.01%, reduced from an average request of 6.29%.The average increase for small group plans is 4.1%, reduced from an average request of 11.28%.
Anthem had requested rate increases of 9.9% for its individual market and 9.5% for its small group plans; CID finalized those figures at 1.9% and 2.6%, respectively. ConnectiCare had sought a 10.3% increase for its group plans, which CID finalized at 4.2%, and had requested a 4% increase for individual plans; instead, CID approved a 4% decrease.
Aetna, which had requested an 18.9% increase, instead received no increase at all.
As a result of its final rulings, CID estimates that approximately 214,600 Connecticut consumers will save $96 million.
Open enrollment for the 2021 coverage year begins Nov. 1.
“Working on behalf of consumers, the department was able to reduce the health insurance rate increase requests thanks to the hard work of our actuaries and professional staff,” CID Commissioner Andrew Mais said. “I will continue to work collaboratively with all stakeholders to find long-term savings while continuing to promote access and eliminate barriers to coverage here in Connecticut.”
Medical trend, a factor that includes rising health care costs such as the costs of prescription drugs and the increased demand for medical services, is rising at approximately 8.8%. Other factors contributing to the final decisions include the removal of adjustments attributed to the impact of Covid-19 and the removal of adjustments that reflected morbidity deterioration.