Rate request: 1.4 percent average decrease for 1st Quarter of 2015
Decision: Approved steeper average decrease of 5 percent on Nov. 3, 2014
On August 25, 2014, ConnectiCare, Inc. filed a request to decrease its overall rates an average of 1.4 percent on certain small group HMO policies marketed outside Access Health CT, the state-sponsored health insurance exchange.
These policies, which cover approximately 10 workers and their dependents, provide health care coverage for businesses with 50 workers or fewer.
The company said the rate request took into account the impact of “trend,” which reflects medical cost inflation and the demand for medical services. Company projected the impact of trend at approximately 10.6 percent and said while base rates are projected to increase 10.9 percent, other modifications will result in an overall average decrease of 1.4 percent.
After an actuarial review, the Department determined that that the company overstated the impact of “trend” and ruled that a more appropriate impact would be 9.5 percent. As a result, the Department disapproved the rate request as submitted and instead approved an even deeper average rate decrease of 5 percent on Nov. 3, 2014.
The new rates will take effect January 1, 2015.