Health Insurance Rate Filing - ConnectiCare Inc. (Individual)
Rate request: New Product Filing
Decision: Approved October 3, 2013, reduced rates by 1.4%
On September 2, 2013, ConnectiCare Insurance Company, Inc. submitted a rate filing for new individual health plans that will provide major medical and prescription drug coverage and will include the Essential Health Benefits as required under the federal Patient Protection and Affordable Care Act (PPACA).
The company intends to market the plans outside of Access Health CT, but said the plans will conform to all applicable state laws and those of PPACA.
Because this is a new product with no market experience in Connecticut, the company calculated the rates based on the claims cost experience from its existing non-grandfathered individual risk pool of ConnectiCare Insurance Company. In building the rate for this product, the company looked at the cost of medical services and demand for those services – factor known as “trend” – and projected they would increase at an annual rate of about 10.50 percent.
After an actuarial review, the Department determined that the company overstated the impact of trend for both medical and pharmacy costs. The Department required ConnectiCare to recalculate based on lower trend percentage and on October 3, 2013 approved the revised rates, which are 1.4 percent lower.
Content Last Modified on 10/3/2013 12:54:30 PM