Health Insurance Rate Filing - ConnectiCare Insurance Company (Small Group Indemnity)
Rate Notice - Average increase of 14.9 percent
On February 27, 2013, ConnectiCare Insurance Co., Inc., filed notice with the Insurance Department that it plans to apply an average increase of 14.9 percent for small group health care indemnity plans used by employers, who have 50 or fewer workers.
The Department does not have statutory authority to approve or deny rates for small group indemnity business and conducted an actuarial review only of the filing in accordance with the federal health care reform guidelines as an unreasonable rate increase request. The Department received no public comments during the 20-day public comment period on this filing and on March 30, 2013 completed its actuarial review.
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 12.6%, while fees and assessments associated with federal health care reform (Transitional Reinsurance Program, Health Insurer Fee, Patient Centered Outcomes Research Fee) account for approximately 2.3 percent increase.
The new rates, which apply to renewals as well as new business, took effect April 1, 2013 on about 1,400 polices in Connecticut. There are approximately 15,000 people covered under these policies.
Content Last Modified on 4/11/2013 1:53:33 PM