Health Insurance Rate Rate Filing - Golden Rule Insurance Company (Individual-November Renewal)
Rate request - 18 percent annual increase
Decision - Approved May 13, 2013 per CT General Statute 38a-481
On April 17, 2013, Golden Rule Insurance Company requested an annual increase of 18 percent on certain individual health plans in Connecticut.
The company included a loss ratio guarantee in its request, invoking Connecticut General Statute 38a-481. This statute requires the Department to approve the rates if filed with a loss ratio guarantee, meaning the company will rebate policyholders the difference if the company actually spent less on claims than it had projected for the year. As a result of the statutory mandate, the Department approved the request on May 13, 2013 after an actuarial review.
The company said the new rates would meet the 80 percent benchmark for the federal medical loss ratio, meaning it would spend at least 80 cents from every dollar of premium on medical claims cost.
The company said it was increasing rates based on the impact of “trend,” the combination of higher medical costs and higher demand for medical services from its membership. The company anticipates that trend impact on premium to be approximately 14 percent beginning November 1, 2013 with 4 percent more in the first quarter of 2014.
The new rates will take effect November 1, 2013 and will affect approximately 2,584 policyholders. The average premium will rise from $6,578 to $7,762 a year or approximately $98 a month.
Content Last Modified on 5/13/2013 4:23:12 PM