Rate request: 21.5 percent decrease
Decision: Approved September 17, 2014
On August 17, 2014, ConnectiCare, Inc. submitted a rate filing requesting a 21.5 percent rate decrease on individual health plans marketed outside of Access Health CT, the state sponsored health insurance exchange.
The policies were first offered in 2014 and provide major medical and prescription drug coverage, compliant with the Affordable Care Act.
Because this is a relatively new product the company calculated the rates based on the claims cost experience from its existing non-grandfathered individual risk pool of ConnectiCare, Inc. from January 2013 to December 2013.
The company projected that increases in medical costs and a higher demand for medical services – a factor known as “trend” – would have an impact of 10.6 percent on 2015 rates.
After an actuarial review, the Department determined that the company’s trend impact projection was excessive and that a more appropriate impact on the rates would be 8.5 percent. However, the requested 21.5 percent decrease in base rates would more than offset the disparity in trend. As a result, the Department approved the rate request on September 17, 2014.
The new rates will take effect January 1, 2015 for 75 members.