Rate request: 19.9 percent increase
Decision: Approved August 23, 2013
On July 5, 2013, ConnectiCare, Inc. filed a request to increase rates 19.9 percent on a small block of SOLO individual health insurance sold between October 2009 and December 2011.
The company said it is requesting the increase to account for increasing medical and pharmacy costs and greater demand for medical services, known as “trend.” Because some of these are policies that were sold before the federal Patient Protection and Affordable Care Act (PPACA) took effect, the company said its increase request reflects the impact of some new mandates and fees
The company said “trend” would account for a base rate increase of about 11.3%. Fees and assessments associated with federal health care reform (Transitional Reinsurance Program, Health Insurer Fee, Patient Centered Outcomes Research Fee) would cost about $15 per member per month. The company also cited new federal guidance issues in February 2013 that added more no-cost share services to the Women’s Preventive Health Care Mandate, such as testing for a breast cancer gene and other contraceptive options.
After an actuarial review, the Department determined the company’s calculations for trend were excessive. However, that factor was outweighed by the increase in claims experience for this particular block of business. The company’s medical loss ratio in 2012 – the percentage of premium it spends on medical service – peaked at 99.3, far above the 80 percent federal health care reform threshold. As a result, the Department approved the increase on August 23, 2013.
The rate change will affect 20 policies in Connecticut beginning October 1, 2013.