Health Insurance Rate Filing - ConnectiCare Insurance Company, Inc. (Small Group Indemnity)
Rate Request: Average increase of 7 percent
Decision: Review completed October 21, 2014
On August 31, 2014, ConnectiCare Insurance Co., Inc., filed notice with the Insurance Department that it plans to apply an average increase of 7 percent for small group health care indemnity plans used by employers, who have 50 or fewer workers.
In its filing to the Department, the company cited the impact of “trend,” which reflects rising medical and pharmacy costs and an increase demand for medical services. The company said “trend” would account for a base rate increase of about 10.4 percent.
After an actuarial review the Department determined that the company’s calculation for “trend” at 10.6 percent was excessive and that a more appropriate pricing impact would be 9.5 percent. However, the Department does not have statutory authority to approve or deny rates for small group indemnity business and conducted an actuarial review only in accordance with the federal health reform guidelines. The Department completed its review on October 21, 2014.
The new rates, which apply to renewals as well as new business, will take effect on January 1, 2015 on about 3,500 employees and their dependents in Connecticut.
Content Last Modified on 10/21/2014 3:32:58 PM