Rate request: New Product Filing
Decision: Approved on September 9, 2013
On August 13, 2013, Oxford Health Plans (CT), 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, the state-sponsored health exchange but said it will conform to all applicable state laws and those of PPACA.
Because these are new products, with no market experience in Connecticut, the company calculated the rates based on the claims cost experience from its other small group plans issued by Oxford Health Insurance and Oxford Health Plans. In building the rates for these products, Oxford looked at the cost of medical services and demand for those services in 2012 – factor known as “trend” – and projected they would increase at an annual rate of about 9.3 percent in 2014.
After an actuarial review, the Department approved the rates on September 9, 2013, determining that they are reasonable to the benefits offered and are neither excessive, inadequate, nor unfairly discriminatory.