Health Insurance Rate Filing - ConnectiCare Inc. (Individual)
Rate request - 13.3 percent increase
Decision (9/19/2012) – Disapproved as submitted, reduced to 11.4% (policies sold from 10/1/2009-3/1/10) and 12.3% (policies sold from 4/1/2010-12/1/2011)
On July 18, 2012, ConnectiCare Inc. filed a request to raise premium rates 13.3 percent beginning Oct 1, 2012 on plans held by 104 policyholders in Connecticut. The company said it is requesting the increase due increasing trends of higher priced medical services and greater demand for medical services from members (utilization). As an example the company cited higher cost beds for inpatient hospitalization and higher cost outpatient services such as chemotherapy and injectible medication. The company did note that pharmacy costs are projected to be lower due to the shift from brand name to generic.
After an actuarial review, the Insurance Department determined that the company’s projected range of 12.9 percent to 14.1 percent premium increase based on medical costs and utilization was excessive, but that the 9.5 percent increase due to pharmacy costs was appropriate. As a result, the Department disapproved the rate as submitted on September 19, 2012 and reduced the increases to 11.4% on policies sold from 10/1/2009-3/1/10 and 12.3% on policies sold from 4/1/2010-12/1/2011.
Content Last Modified on 9/21/2012 10:37:18 AM