Health Insurance Rate Filing - ConnectiCare Insurance Company, Inc. (Small Group Indemnity)
Rate Request: New Product Filing
Decision: Review Completed on November 13, 2013
On October 4, 2013, ConnectiCare Insurance Company, Inc. submitted a rate filing for new small group 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 small group 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 10.24 percent and 11.25% for pharmacy.
The Department does not have statutory authority to approve or deny rates for small group indemnity businesses and conducted an actuarial review only of the filing as part of the federal health care reform requirements. Based on that actuarial review, the Department determined, on November 13, 2013, that based on the company’s rate calculations it would be able meet the required 80 percent medical loss ratio mandated by the federal law.
Content Last Modified on 11/13/2013 12:34:14 PM