Insurers that sell policies inside and outside Connecticut’s Affordable Care Act surprised supporters in July with calls for an average 20.4% increase in individual health plans next year.
The proposed rate hike announced by the state’s insurance department last month also includes a recommended 14.8% increase in small group health insurance plans.
This demand is significantly higher than what insurers asked for health insurance in 2022 last year. In 2021, carriers called for an average increase of 8.6% for individual plans and 12.9% for small group plans.
Lynne Ide, program lead for communications outreach and engagement at the Universal Health Care Foundation in Connecticut last month, said: “Looking at these rate requests, the range is off the chart.
“Our big concern right now is that these proposals, combined with inflation and the impact of COVID, will increase spelling trouble. I am deciding to go without health insurance because I have no health insurance.”
The insurance department is reviewing the request and plans to make a decision in September. The public will have a chance to comment on the proposed rate hike before it happens.
The Insurance Division has scheduled a hearing on August 15th at 9:00 am in the Legislative Building (300 Capital Ave., Hartford).
Members of the public can testify in person or virtually. Sign-up for in-person testimony will begin at 8:30 am in the Legislative Building on the day of the hearing.
The deadline to sign up for virtual testimony is today (August 12th). Virtually anyone wishing to testify can sign up by emailing cid.RateFilings@ct.gov and writing their name and comments by noon.
Insurance company representatives are given time to explain the rate increase request, and insurance department representatives can ask questions. The hearing will be broadcast on CT-N.
Here’s what you need to know about proposals.
Anthem Health Plans, CTCare Benefits Inc., ConnectiCare Insurance Company Inc.
Anthem requested an average increase of 8.6% for individual policies covering 27,698 people. The proposed changes range from a 1.8% decrease to a 16.1% increase, depending on plan.
The company also called for an average 3.6% increase in small group insurance covering 19,271 residents. The proposed changes range from a 1.2% decrease to a 26.3% increase.
CTCare Benefits requested an average price increase of 24.1% for individual plans covering 75,003 people. The proposed changes range from 18.7% to 33.2% increase, depending on policy.
It also called for an average 22.9% increase in small group plans covering 3,476 residents (increase from 20% to 28.9%).
ConnectiCare, which sells only individual policies on the exchange, demanded an average price increase of 25.2% for plans covering 8,782 people. The proposed rate hikes range from 17.1% to 32.2%.
A complete list of on-exchange and off-exchange plans, as well as rate increase requests, can be found here.
ConnectiCare spokeswoman Kimberly Kang said medical and drug costs are two factors driving the rate hikes the company is demanding.
“Our proposed rates are based on several factors, including trends in medical and pharmacy costs, and may include delays in treatment, as well as the ongoing impact of COVID-19 on our members’ use of our services. ” she said.
“Also, the legislative and regulatory environment has impacted market conditions beyond the company’s control, such as the loss of enhanced advanced premium tax credits provided through the U.S. Relief Plans Act, which expires in 2022, and state-mandated profits. We continue to present challenges.”
Anthem spokesperson Alessandra Simkin said:
The insurers will send their representatives to the hearing in August to ask more detailed questions about the proposed price increases.
An insurance department actuary will review the requested increase. As part of the review, we look at trends in unit costs (total expenses incurred by the company), service utilization, and expected claim severity.
The department will ask insurance companies questions and ask for clarifications if necessary.
We will also hold public hearings to get input from carriers, medical advocates, and the public.
After review, the department can approve all requested increases, reject them, or amend them to a different number.
Final changes are expected to be published in late August or early September.
No. For example, last year, the state’s insurance department approved him raising the average rate on his 2022 Personal Health Plan by 5.6%, even though insurers demanded an 8.6% premium on him. did.
The ministry approved a 6.7% increase in the average interest rate for small group insurance, even though insurers had asked for 12.9%.
In 2020, Anthem Health Plans requested an average 9.9% increase in individual plans serving 22,071 people through exchanges.
The insurance sector approved an increase of 1.9%.
In the same year, ConnectiCare Benefits Inc. asked for an average 5.5% increase in the exchange’s individual plans. This covered 75,174 customers at the time. The insurance department approved her 0.1% reduction.
Health care advocates have criticized the proposed price hikes, fearing that more people will be uninsured because the prices are too high.
“Obviously my jaw hit the floor,” said state medical advocate Ted Doolittle. “I am deeply concerned that people will be left without coverage because of this high fee. Insurance companies and providers will explain to people in the state why this is inevitable and there is no alternative. I have a duty to.”
Ide, of the Universal Health Care Foundation in Connecticut, said the proposed increase “doesn’t seem to make sense.”
“Why do some carriers claim an average of 8.6% in the individual market and 3.6% in the small group market, while others claim 24% and 22% in those two markets? The numbers are off the hat,” she said. Told.
Attorney General William Tong has called for a special hearing that will allow officials to gather evidence and question insurance companies closely about the proposed increase.
Officials can cross-examine witnesses and present their evidence in public.
The insurance department did not agree to a formal hearing.
“Medical costs and insurance premiums are already affordable for many families, businesses and individuals in Connecticut, and these double-digit rate hikes warrant close scrutiny,” Tong said.
General enrollment for 2023 health insurance begins on November 1st.
This story originally appeared on the Connecticut Mirror website www.ctmirror.org.
