CID: Health Insurance Rate Filing - Aetna Health Inc. (CT) - Large Group HMO

Health Insurance Rate Filing - Aetna Health Inc. (CT) - Large Group HMO

Rate request: 20.6 percent average

Decision: Disapproved, limited average increase to 19.9

On February 3, 2017, Aetna Health Inc. filed a request to increase rates 19.6 percent in the third quarter and 21.5 percent in the fourth quarter on its large group health insurance policies for employers with 51 or more workers.

There are approximately 548 covered lives under this block of business.

In calculating the rates, the company noted it was factoring in impact of medical inflation, known as “trend,” which takes in to account the increase in medical costs and the demand for medical services. The company calculated a trend impact of 10.8 percent for medical services and 13.5 percent for pharmacy costs.

After an actuarial review, the Department determined that the company’s claims experience is deteriorating but also noted that Aetna’s calculated impact of medical inflation or “trend” was overestimated. As a result, the Department disapproved the initial increase request but limited it to an average increase of 19.9 percent.

The new rates will take effect for policies issued or renewed on or after July 1, 2017.


Find the filing, brief summary and public comment section here at Health Insurance Rate Filing

Content Last Modified on 3/27/2017 4:27:14 PM